FORBES ASIA
FROM THE VAULT
New Media Mogul: November 5, 2012
BY ABRAM BROWN
AT 35, JACK DORSEY was running
two of the hottest startups in America:
Twitter and Square. In less than three
years, Twitter had gone from 30 million
monthly active users worldwide to 167
million, creating citizen journalists of
a sort who iled more than 400 million
tweets a day. Its revenue would top $300
million in 2012. Square, meanwhile, would
end the year with $203 million in revenue
and would more than double that the next.
Rising valuations for the two companies gave
Dorsey a $1.1 billion fortune, enough for him
to make he Forbes 400 for the irst time.
He already had his eye on something big-
ger, though. “I don’t think there has been any
recent revolution of our government or how we
think about running governments,” he told us.
“I would love to see technology help with that.”
Dorsey probably couldn’t have imagined
just how dramatically Twitter would end up
changing the tenor of American government.
Twitter is the president’s preferred communica-
tion method, of course, and has become one of
the world’s most powerful means of distributing
information. Square is less talked about, but more
successful inancially: Although Twitter’s revenue
fell in 2017, Square’s continues to rise, increasing
30% last year to $2.2 billion. Dorsey is now worth
$6.3 billion.
FAST-FORWARD
To Bezos—and Beyond
2012: Amazon’s decision to
sell the Kindle Fire tablet at a
break-even price was weighing
on the e-retailer’s stock—and
on Je Bezos’ fortune, which
was then a mere $23 billion.
2018: That figure is now $160
billion after a breathtaking five-
SIGN OF THE TIMES year run in which Amazon PLUS ÇA CHANGE
Guns Blazing moved into markets such Closing Time
With President Obama in oice, firearm as groceries, healthcare, Edward Lampert was
owners rushed to stockpile weapons, fearing brick-and-mortar retail desperately spinning o
he and Congress would introduce tougher and connected-home Sears’ Hometown and Outlet
gun-control laws. That was good for gun devices. stores to generate cash. The
makers like Sturm Ruger and its CEO, Mike situation for the iconic retailer BEN STECHSCHULTE/REDUX;
Fifer (above); Ruger’s sales had more than was bad then—and has only
doubled in Obama’s first term, to $406 million. worsened. This year it’s closing
another 46 stores.
50 | FORBES ASIA OCTOBER 2018
FORBES ASIA
SPORTSMONEY
Game of Cash Cowboy:
Dallas owner
Jerry Jones.
Inches
Why the boom in NFL team values
has slowed to a crawl.
BY MICHAEL K. OZANIAN, KURT BADENHAUSEN AND CHRISTINA SETTIMI
NATIONAL FOOTBALL LEAGUE team values have plateaued.
he value of an average franchise increased 2% over the past year,
to $2.57 billion. hat was the smallest increase since 2011, when the
average igure increased 1.4%. When adjusted for inlation, values fell
by 0.7% this year.
he primary reason: the dearth of people who have the liquid
wealth to buy 30% of an NFL team. When Jerry Richardson put the
Carolina Panthers up for sale ater last season, some pundits were
predicting the team could go for $3 billion. Billionaire David Tepper
got it for $2.3 billion because he was the only person at the table with
enough cash to satisfy the league’s inancing rules.
he NFL has the strictest ownership requirements among the four
major U.S. leagues. In a team sale, the general partner must own at
MATT HAWTHORNE EXCLUSIVE NFL TEAM VALUES
OCTOBER 2018 FORBES ASIA | 51
FORBES ASIA
SPORTSMONEY
least 30%, and the maximum amount of FRANCHISE VALUES
debt at the team level is $350 million. If a 2018 ($MIL)
team is sold for $2.3 billion, for example, Team 0 1998 1000
the minimum GP equity would be $585 Owner
million, assuming the GP has secured the Dallas Cowboys
Jerry Jones
maximum amount of debt for the team.
In other words, it takes much more New England Patriots
Robert Kraft
than being a member of he Forbes 400,
New York Giants 2. MATT RYAN
many of whose fortunes were made via John Mara, Steven Tisch ATLANTA FALCONS
A F
T
T
O
real estate or privately run companies. Los Angeles Rams TOTAL EARNINGS:AL EARNINGS:AL EARNINGS:
$ $57.5 MIL
It takes liquid wealth—lots of it. Stanley Kroenke SALARY/BONUSES:
/BONUSES:
One reason this has become an in- Washington Redskins $52.5 MIL
ENDORSEMENTS:
ENDORSEMENT
Daniel Snyder ENDORSEMENT S:
creasingly large pill for one individual to $ $5 MIL
5 MIL
San Francisco 49ers
swallow is the contrast between the long- Denise DeBartolo York,
John York
term performance of the stock market
Chicago Bears
(a key source of liquid wealth) and NFL McCaskey family
1. A
1. AARONARON
franchise values. During the past 20 years, New York Jets RODGERS
Johnson family GREEN BAY PACKERS
GREEN B
GREEN BA
A
Y P
CKERS
CKERS
team values have climbed almost nine- T O T
TOTAL EARNINGS:AL EARNINGS:AL EARNINGS:
O
fold—an 11.6% annual rate—versus just Houston Texans $75.9 MIL
Robert McNair SALARY/BONUSES:
AL
/BONUSES:
4.5% for the S&P 500. Moreover, the NFL
$66.9 MIL
Philadelphia Eagles $66.9 MIL
permits no corporate ownership. League Je rey Lurie ENDORSEMENTS:
ENDORSEMENT
ENDORSEMENT
S:
ENDORSEMENT
$
$9 MIL
rules stipulate a maximum of 24 limited Denver Broncos
partners. In the example above, the LPs Pat Bowlen Trust
would have to throw in $1.37 billion—and Green Bay Packers
Shareholder-owned
get no say in how the team is run.
Atlanta Falcons
he NFL’s requirements have been Arthur Blank
ef ective. he league has not had a team
Baltimore Ravens
in inancial trouble because of too much Stephen Bisciotti
debt since 1999, when Art Modell agreed Pittsburgh Steelers
Daniel Rooney Trust,
to sell the Baltimore Ravens. h ere have Art Rooney II
been no Los Angeles Dodgers, New Or- Seattle Seahawks
Paul Allen
leans Hornets or Arizona Coyotes i ascoes
Miami Dolphins
in the NFL. Stephen Ross
Already the biggest and most proi table Oakland Raiders
league in the world—the average team has Mark Davis
$427 million in revenue and $95 million in Minnesota Vikings
Zygmunt Wilf
operating income—the NFL will soon get
even richer. It can opt out of the Sunday Indianapolis Colts
James Irsay
Ticket deal with AT&T’s DirecTV in 2019,
Carolina Panthers
Carolina Panthers
four years early. he current deal, which David Teppervid Tepper
Da
averages $1.5 billion a year, is worth 50% Los Angeles Chargers
more than the prior agreement. Spanos family
Bidding for Sunday Ticket will be hot. Arizona Cardinals
William Bidwill
Amazon and Disney’s ESPN are likely to
Kansas City Chiefs
be interested, given their push toward Lamar Hunt family
streaming sports. Forbes’ best guess: h e
Jacksonville Jaguars
annual average value of the next Sunday Shahid Khan
Ticket deal could be twice this one. New Orleans Saints
Dallas Cowboys owner Jerry Jones Gayle Benson
recently said, “Legalized gambling is going Tennessee Titans
Amy Adams Strunk
to increase the amount of time people
Tampa Bay Buccaneers
spend watching the NFL on TV and Glazer family
online, and will therefore have a positive Cleveland Browns
impact on the value of our content.” Dee & Jimmy Haslam
As a result, barring any changes in Cincinnati Bengals 479%
Michael Brown
ownership and inancing rules, the schism
Detroit Lions 445%
between the NFL’s economics and team Martha Firestone Ford
sale prices will probably widen. Which
Bufalo Bills 535%
isn’t necessarily a bad thing. Terry & Kim Pegula
52 | FORBES ASIA OCTOBER 2018 Enterprise value (equity plus net debt) of team based on current stadium deal (unless new stadium is pending).
PERCENT GAIN 1998-2018
2000 3000 4000 5000
1111%
1408%
THE NFL’S HIGHEST-EARNING PLAYERS
1046%
893%
669%
1100%
1124%
3. JIMMY
3. JIMMY
3. JIMMY
4. KHALIL MA
4. KHALIL MACK
ARON DONALD
GAROPPOLO 1000% 4. KHALIL MA 5. AARON DONALD
GO BEARS
CHICA
S ANGELES RAMS
AN FRANCIS
S AN FRANCISC O 4 9ERS CHICAGO BEARS LOS ANGELES RAMS
SAN FRANCISCO 49ERS
T
AL EARNINGS:
AL EARNINGS:
T
O
T TOTAL EARNINGS:AL EARNINGS: TOTAL EARNINGS: TOTAL EARNINGS:
AL EARNINGS:
$41.1 MIL
$41.8 MIL.8 MIL
$43.1 MIL
/BONUSES:
AL
/BONUSES:
SALARY/BONUSES: SALARY/BONUSES: SALARY/BONUSES:/BONUSES:
$40
$40.9 MIL
$41 MIL
$4
$42.6 MIL 1004%
ENDORSEMENTS:
ENDORSEMENT
ENDORSEMENTS:
ENDORSEMENT
ENDORSEMENTS:
ENDORSEMENT S: ENDORSEMENT ENDORSEMENT
000
$250,000
$750,000
$250
,
$500,000
$
,
728%
976%
1000
1016%
687%
500 NFL
762% 400
GOLD
300
696%
U.S. HOME PRICES
657% 00
SCORING OPPORTUNITIES S&P
930%
NFL team ownership has been one of the best
930% investments going over the past two decades, with 100
annualized increases of 11.6%. But the gains have
slowed to their lowest since the Great Recession be-
948%
cause of strict ownership requirements and a dearth
of willing investors liquid enough to purchase
530% 1998 2000 2005 2010 2015 2018
franchises worth $2.6 billion on average.
817%
40%
831%
35
717%
30 MICHAEL AINSWORTH; AP PHOTO/MARK TENALLY; RONALD C. MODRA/SPORTS IMAGERY/GETTY IMAGES; WINSLOW TOWNSON/AP IMAGES FOR PANINI
607% ILLUSTRATIONS BY DAVID URBAN; GREGORY SHAMUS/GETTY IMAGES; THEARON W. HENDERSON/GETTY IMAGES; AP PHOTO/DARRON CUMMINGS; AP PHOTO/DENIS POROY; DAVID ALLIO/ICON SPORTSWIRE 951/DAVID ALLIO/ICON SPORTSWIRE/NEWSCOM; SEAN GARDNER/GETTY IMAGES; AP PHOTO/
25
754%
20
537%
15
478%
10
5
% 0
-5
1999 2000 2005 2010 2015 2018
OCTOBER 2018 FORBES ASIA | 53
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FORBES ASIA
MAILCHIMP
Mom &
Pop’s Best
Friend
Ben Chestnut and Dan Kurzius have built
billion-dollar fortunes by helping save small
businesses the old-fashioned way: email.
BY ALEX KONRAD
wo years ago, Ben Chest- some America’s deepest-pocketed fi-
nut found a crumpled nanciers—for his wife to shop a sale
piece of paper in the in the event of his death, but not a
trunk of his Mercedes minute before. “That’s my retirement
T GL63 SUV, alongside plan,” Chest nut quips.
the muddy shoes and helmets he He has good reason not to rest.
uses while mountain biking in the Chestnut and his cofounder, Dan
hills of northern Georgia. Forgot- Kurzius, have both profited richly
ten there for a year, the paper as- from their patience. With $600 mil-
sessed how much a top private equity lion in revenue, Mailchimp is in the
firm in New York thought his compa- black and has more than doubled its
ny was worth: $2 billion. The CEO of estimated valuation to $4.2 billion in JAMEL TOPPIN FOR FORBES
Mailchimp stashed it in his personal the last two years, giving Chestnut,
safe along with the business cards of 44, and Kurzius, 46, its sole owners,
56 | FORBES ASIA OCTOBER 2018
Mailchimp CEO Ben
Chestnut leans on a
cardboard sculpture of
his company’s mascot,
Freddie, in the lobby of its
Atlanta headquarters. His
mission: to help business
owners succeed. “When
a small business fails, the
whole family feels it.”
FORBES ASIA
MAILCHIMP
stakes worth $2.1 billion each. part-time DJ and former competitive tomers about the features they wanted
Mailchimp’s success is built on the skateboarder who’d bluffed about his next, making eight to ten cross-coun-
backs of America’s small business own- own coding skills, to work with him on try trips each year to talk to small-
ers. Its most popular service—email the company’s dot-com-era MP3 music scale entrepreneurs. Identifying him-
marketing—might seem a low-tech, un- service. After just a few months, the self as just “Dan,” he learned that store
sexy medium in 2018. But small busi- unit folded in the tech crash. owners and small business operators
ness owners usually can’t afford mar- Kurzius landed elsewhere at the wanted help advertising on Facebook,
keting teams or social media pros. To company, but Chestnut was laid off, Twitter and Instagram. So Mailchimp
the 20 million people on Mailchimp spending the next few months as a free- added simple tools to run social media
today, the ability to send a sleek, on- lance website builder. He still remem- campaigns. Ease of use remains a high
brand email with just a few clicks can bers the sting of losing his job. “What priority.
mean the difference between bankrupt- a feeling that was, walking out with a “Mailchimp has made my life easy,”
cy and success. box in your hand,” he says. But Kurzius says Hrag Kalebjian, a third-genera-
Chestnut and Kurzius have worked and Chestnut kept tinkering together, tion coffee roaster at Henry’s House
to keep that lifeline affordable: Mail- first on an e-greetings site and then a of Coffee in San Francisco. “It lets me
chimp’s customers pay nothing for the service that had personal resonance. focus on the other parts of the business
first 2,000 subscribers or 12,000 emails It wasn’t just Chestnut who had found and not worry about leakage of people
sent, and then $10 a month after that. himself jobless in the spring of 2000. going out my back door.”
Now, after months of behind-the-
scenes work, Chestnut and Kurzius
“I WANT PEOPLE TO SEE THAT THE PAST 17 are unveiling what Chestnut calls “Act
Two.” Some new efforts are decidedly
YEARS WERE JUST A WARM-UP.” low-tech, such as testing printed post-
cards; their customers sent 25,000 this
summer. Others are much more sophis-
The low cost translates potentially into Kurzius had witnessed his father’s bak- ticated. By tracking a business’s cus-
a big upside. At Stringjoy, a Nashville- ery go bankrupt; Chestnut’s older sister tomer base across every point of inter-
based maker of custom guitar strings, lost her hair salon. What if a simple site action—Facebook, email or in-store,
owner Scott Marquart says every dollar could allow small business owners to for example—Mailchimp wants to sup-
he spends on sending a weekly email easily email their most loyal customers? plement the email lists that gave the
through Mailchimp’s software is good It might not save them, but it certain- company its start, adding more tar-
for $20 in new sales. “Customers feel ly couldn’t hurt in an ever noisier and geted groups: say, customers who
like they know me,” he says. more competitive environment. haven’t made a purchase in the last six
In Chestnut’s oice at Mailchimp Mailchimp, named ater their most months. Such capabilities are already
headquarters, an old Sears warehouse popular e-card character, launched in standard with much more expensive
northeast of downtown Atlanta, there’s a 2001 and remained a side project for software, like Salesforce; Mailchimp
photo of a boxing glove accompanied by several years, earning a few thousand is trying to make them affordable for
an apocryphal Mike Tyson quote: “Every- dollars a month. hen in 2007, when small businesses. “We can democratize
body has a plan until they get punched in it hit 10,000 users, the two decided to that technology,” says John Foreman,
the face.” Chestnut is no boxer—though commit full-time. Mindful of what can Mailchimp’s head of product. “Like
he met his wife in high school in kara- happen when outside investors get con- stealing fire from the gods.”
te class—but he relishes the sentiment be- trol, they shunned venture capital cash That new challenge keeps Chest-
cause his career started by absorbing a and bootstrapped from their proits in- nut and Kurzius locked in to what
couple igurative jabs to the chin. stead, vowing to ship a new feature each both see as lifetime tours of duty with
The son of a serviceman and his month to outpace their better-inanced Mailchimp, even as they launch fam-
Thai spouse, Chestnut transferred to competition. ilies. And family foundations: Chest-
Georgia Tech in 1994 to study industri- Mailchimp pitched employees on nut’s is first, allocating $10 million to
al design, only to realize he wanted to profit-sharing over equity stakes and help Georgia nonprofits. Go public?
learn how to build websites—something stability over rocket-ship growth. Not worth the headache, Chestnut says.
the school didn’t teach in the mid- But it grew at a viral clip anyway, on Sell? The founders look incredulous.
1990s. So he taught himself by reading the strength of word of mouth and “To this day, it’s just a fun feeling that
technical books in the aisles of his local savvy marketing, like its 2015 spon- we can help,” Kurzius explains. Chest-
Barnes & Noble bookstore and eventu- sorship of the breakout podcast Seri- nut chimes in: “I want people to see
ally got a job at Cox Interactive Media. al. Email remained its bread and butter, that the past 17 years were just a warm-
Once there, Chestnut hired Kurzius, a but Kurzius started canvassing cus- up.” F
58 | FORBES ASIA OCTOBER 2018
SPECIAL ADVERTISING SECTION
BUSINESS TRAVEL
HEADS IN A NEW
DIRECTION
ASIA’S LEADING HOTELS ARE EVOLVING TO MEET
THE NEEDS OF TODAY’S TRAVELERS
The hospitality business is changing rapidly as increasingly discerning travelers seek out authentic and personalized
experiences on their treks globally. Looking beyond glitzy facades and trendy architecture, business travelers crave
genuine service that comes with a big dose of convenience.
Leading hotel operators have taken heed programs to gather insights about their the bar in those urban metropolises. For
of their customers and are adapting their guests to better customize their experi- instance, Manila’s hospitality scene is
offerings accordingly. Indeed the most suc- ence through amenities and services. being lit up by Solaire Resort’s first prop-
cessful players are those that have stayed erty in Entertainment City. The US$1.2
abreast of the new trends impacting their Leading the Revolution billion complex is master-planned and
industry and strive to provide innovative Asia’s leading business hotels are at the designed by world-renowned American
services that make the business travel forefront of this revolution in hospitality architect Paul Steelman.
experience smoother and more enjoyable. and regularly top “Best of” lists around A new standard in luxury accommoda-
There is much to be gained from get- the world. Many are adapting their offer- tion has also been set in Korea with the
ting the formula right. The business travel ings to ensure they stay relevant amid a reopening of Executive Tower, Lotte Hotel
industry is booming, with the global annual fast-changing competitive environment. Seoul’s latest premium offering in the
spend predicted to reach US$1.6 trillion by In July, Pan Pacific Hotels Group (PPHG) downtown district of Gangbuk, after a year-
2020, according to GBTA Foundation, the unveiled a brand refresh to position long renovation.
education and research foundation of the its Pan Pacific and PARKROYAL brands The 278-room Executive Tower was
Global Business Travel Association. to be closer to the customers of today. unveiled in September and features the
Beyond excelling at the essentials—such The group is doing this by rejuvenating sleek, minimalist design of U.K.-based
as locating properties in strategic loca- its offerings and introducing new loyalty GA Group, the interior design company
tions, offering excellent service and pro- programs at its 40 hotels, resorts and behind prestigious hotels such as Four
viding world-class conference and meeting serviced suites throughout Asia Pacific, Seasons Hotel Casablanca and Waldorf
facilities—the top business hotels are also North America and Europe with a long- Astoria Amsterdam.
embracing digital technology to enhance term view to better serve and anticipate These and other leading hospitality
their offerings. its guests’ needs. groups in the region are setting the stan-
For instance, some are leveraging digital New exciting properties are also dard for business travel and paving the way
platforms such as mobile apps and loyalty emerging in Asia’s major cities and raising for an exciting new future for the industry.
Asia’s Leading Business Hotels 1
SPECIAL ADVERTISING SECTION
EXECUTIVE TOWER AT
LOTTE HOTEL SEOUL:
RAISING THE BAR FOR LUXURY HOTELS
A new standard in luxury accommodation has been set with the reopening of the Executive Tower, Lotte Hotel Seoul’s
latest premium offering in the downtown district of Gangbuk, after a year-long renovation.
Deluxe Room
Unveiled on September 1, Executive Tower The VIP service of the Execu-
has 278 rooms and suites featuring the tive Tower continues when
sleek, minimalist design of U.K.-based GA guests enter their rooms. All Royal Suite Room
Group, a world-renowned interior design suites come with a Valet Box,
company that has designed prestigious which allows you to put aside anything that other distinguished guests, and features
hotels such as Four Seasons Hotel Casa- you need taken care of—from laundry to the Beautyrest Black, the largest mattress
blanca and Waldorf Astoria Amsterdam. dirty dishes—without having to request available in the country. The Royal Suite
Accommodation at the Executive Tower hotel staff. For those on a busy schedule, also comes equipped with a private fit-
range from the spacious deluxe rooms to professional hoteliers are on hand to pack ness area for guests to enjoy their work-
the ultra-luxurious Royal Suite. and unpack your belongings. out in private.
The premium service on offer at the Those looking for the epitome of luxury With so many premium services on offer,
hotel is immediately apparent upon step- accommodation will find it in the Royal Lotte Hotel Seoul’s Executive Tower brings
ping up to the reception desk on the 15th Suite, which at 461 square meters is the luxurious accommodation to new heights
floor. Here, guests will receive personal- largest of its kind in Korea. This extrava- in the heart of Korea’s capital city, and is a
ized service in an exclusive space inspired gant suite has housed world leaders and must stay for discerning travellers.
by traditional Korean motifs. There is no
need to queue, as front desk receptionists
provide individual check-in and check-out MICHELIN STAR CHEF PIERRE GAGNAIRE MAKES
services while you wait comfortably on the A COMEBACK
lobby couch. Private meeting rooms and
Pierre Gagnaire à Seoul will be returning to Lotte Hotel Seoul on the 35th floor of
business services are also available upon
the Executive Tower. In 2015, Pierre Gagnaire topped French gourmet magazine
request at reception.
Le Chef’s “100 of the Best Chefs in the World” based on a survey of Michelin star
Meanwhile, Executive Lounge guests can
chefs. Pierre Gagnaire à Seoul is this culinary master’s only restaurant in Korea.
indulge their gastronomic cravings at Le
Salon, the largest club lounge in Korea. This
Pierre Gagnaire à Seoul will introduce a new menu that retains the restaurant’s
luxurious area on the 16th floor is a premium
renowned quality and taste at prices that will allow food enthusiasts to enjoy
dining area where breakfast, light snacks,
classic French cuisine in Seoul.
afternoon tea and bar services are available.
2 Asia’s Leading Business Hotels
SPECIAL ADVERTISING SECTION
SOLAIRE RESORT:
RISING SUN OF MANILA’S NEW LUXURY CLASS
Manila’s sparkling Entertainment City by the Bay features world-class attractions and accommodations. Among them,
Solaire Resort stands out as a jewel of service and luxury in the city’s most promising new district.
The Philippine capital has been busily Solaire’s Sky Tower a five-star rating for private workout rooms and putting greens,
reinventing itself with a slew of new devel- two years running. As Solaire’s President plus 24-hour butler and chef services are
opments and infrastructure. As with any and Chief Operating Officer Thomas Arasi all part of the top-tier Solaire experience.
economic hotspot, Manila’s hotel scene is states: “We are proud and honored to have Each villa also features a private meeting
experiencing a major evolution. This is in been presented the Forbes Travel Guide or conference room—impressive enough
no small part due to Solaire Resort’s game- five-star rating and this is a testimony of the for even the most discerning chairman of
changing debut in glittering Entertainment resort’s consistent efforts in always striving the board or head of state. All in all, the
City. The US$1.2 billion complex, master- to offer exceptional service.” resort offers 4,100 square meters of meet-
planned and designed by world-renowned ing facilities. Eight additional meeting
American architect Paul Steelman, sent Sophisticated Spaces rooms and two boardrooms can also be
a signal to the world that Manila has truly The hotel’s 800 opulent rooms, suites and made available, along with full banquet
arrived in terms of luxury hospitality. bayside villas span across two structures and catering facilities.
The integrated destination resort sprawls —the Bay Tower and Sky Tower. Solaire
over an 8.3-hectare waterfront site, provid- boasts the most spacious deluxe rooms Exceptional Attractions
ing a front-row seat of the inspiring Manila in the country at 43 square meters, while A business trip does not have to be bor-
Bay sunset to every guest. Solaire has its Sky Studio units are an even more gen- ing, and you are unlikely to run out of rec-
space in spades to host grand events, but erous 65 square meters. All guest rooms reational activities at Solaire. The resort
still somehow manages to feel private and are bathed in natural sunlight streaming boasts a state-of-the-art, 1,760- seat Lyric
intimate—an exclusive urban resort where through floor-to-ceiling glass windows, Theatre that hosts Broadway musicals,
you can get away from it all. The superlative which are all the better to view the bay. You concerts and events, and can also be used
service afforded by its impeccably trained can take advantage of the large desks and for conferences, award presentations and
staff surpasses expectations. The carefully complimentary in-room, high-speed inter- product launches. You can de-stress in
curated artwork by Filipino masters gives net to get some work done, then sleep your utter luxury at the 2,500-square-meter
the resort a boutique, bespoke feel—like cares away on 350-thread count linens. spa, which offers the ultimate in decadent
a landscaped gallery set amid lush gar- If you need serious space, you can move treatments and massages. Work out in
dens. The Solaire brand prides itself on this up to a 100-plus-square-meter suite, or a the 1,300-square-meter gym, do laps in
tasteful balance of elegance and comfort, 395- to 500-square-meter villa. For the the 72-meter pool or lounge in one of the
anchored by unrivaled Filipino hospitality truly decadent, the lavish 936-square- cabanas before taking a quick dip in the
and a meticulous eye for detail. No surprise meter Chairman’s Villa beckons. Full liv- jacuzzi. For a less conventional diversion,
then that Forbes Travel Guide has awarded ing and dining facilities, walk-in closets, you can clear your head with a few rounds
at the exclusive Sky Range Shooting Club.
What other hotel possesses its own 20-lane
indoor shooting range equipped with the
latest technology? The range features
its own cafe, lounge and business room
as well.
Any one of Solaire’s 14 dining options is
sure to sate your appetite and provide a
feast for the senses. Indulge your palate on
a culinary journey directed by world-class
chefs. Circle the gastronomic globe from
Finestra Italian Steakhouse and the Latin-
inspired Waterside Restobar, the Asian
trifecta of Red Lantern, Yakumi and Kiwa Photos credit: Enzo Razon / Tarzeer Pictures, Inc.
restaurants, to the haute cuisine fusion of
Chairman’s Villa
4 Asia’s Leading Business Hotels
SPECIAL ADVERTISING SECTION
Solaire Pool Bar
House of Zhou. Complement your meal If you want to explore the rest
and keep the conversation going by choos- of the city’s offerings, you will Photo credit: Paco Guerrero
ing a vintage from among more than 500 find that the Bay Area is Manila’s
wine labels or have the bartender at the hottest neighborhood for good
Dragon Bar whip up a special cocktail. Or reason. Major shopping malls,
you can cap the night with Manila’s mov- historical sites, museums and Finestra Italian Steakhouse
ers and shakers at The Macallan Whisky cultural venues are all within
Bar. The Bay Club Lounge is always ready easy reach. Whether it’s family-friendly fun elevated expressway, with easy connec-
to serve guests, from breakfast to midnight or highbrow fare, there is something in or tions to key transport hubs and business
snacks or drinks. near the Entertainment City for everyone districts. The Solaire welcome begins
Need a new outfit to go wining and dining to enjoy. upon arrival, with an airport representative
or for a big meeting? The Shoppes at Solaire escorting you to your vehicle of choice for
carry a selection of luxury brands ready for The People Make the Place the quick drive to the resort. From there,
those who dress to impress. Louis Vuitton, Beyond its recreational attractions, one of expect a seamless check-in experience
Givenchy, Prada, Yves Saint Laurent and the district’s main advantages is its stra- and a stress-free stay, with a multilingual
Y-3, among others, all present flagship bou- tegic location. You can get to and from team at the ready who are used to catering
tiques stocked with the latest fashion. the airport in a few minutes via the direct to guests’ requests.
“We develop and sustain our world-
class service standards and rigorously train
and develop all our team members. It is
not just what we do, but more importantly
how we do it—with our world-renowned
Filipino hospitality that is our heart and it
is our soul, embedded in each and every
team member of Solaire. Together, we’ll
put Filipino hospitality on the map as the
world standard for excellence—something
that others will aspire to,” says Arasi.
The Shoppes at Solaire
Asia’s Leading Business Hotels 5
SPECIAL ADVERTISING SECTION
PAN PACIFIC HOTELS GROUP:
POISED FOR THE FUTURE
With more than 40 well-established properties in its portfolio, the hospitality group is revitalizing its brand with a core focus
on connecting with its customers.
The hospitality industry has evolved over the
past decade to cater to the changing expec-
tations and lifestyle habits of an increasingly
sophisticated clientele, with travelers seek-
ing authentic and enriching experiences on
their trips abroad. To ensure that it stays rele-
vant amid this shifting landscape, Pan Pacific
Hotels Group (PPHG) recently refreshed its
brand positioning and customer offerings.
The PPHG family carries two established
brands, Pan Pacific and PARKROYAL. Today,
the group operates more than 40 hotels,
resorts and serviced suites throughout Asia
Pacific, North America and Europe. It is the
only Asia-based hotel chain to offer all three
products: hotels, resorts and services suites.
“Next year, we’ll be counting 10 years
since PPHG was formed. Therefore we
decided it was timely to take a fresh look at
our brand positioning and customer offer-
ing with a long-term view to better serve
and anticipate guests’ needs, now
and into the future,” says PPHG
Chief Sales and Marketing Officer
Cinn Tan. PARKROYAL on Pickering, Singapore
To begin, PPHG consulted with its
guests, partners, owners and other user-generated content as a key feature.
frequent travelers to gain insight to PPHG also rebranded its loyalty program
develop its new brand positioning. “Pan Pacific DISCOVERY,” which offers
exclusive room rates, late check-out and
Committed to Sincerity room upgrades for direct bookings, and
The exercise resulted in three dis- integrated its serviced suites portfolio into
tinct but interconnected messages the program. It has also launched the invi-
for the group’s overall brand Pan tation-only “Pan Pacific Connections” to
Pacific Hotels Group, which has reward loyal corporate clients with points
embraced the motto “Sincerely Artist rendering of Pan Pacific London for booking rooms, meetings and events
Yours, with Pan Pacific Hotels and at PPHG properties.
Resorts” making the adage “Find
Your Balance” its own and PARKROYAL Underpinned by PPHG’s hallmark sincer- A Growing Global Footprint
Hotels & Resorts adopting “The Best of ity, the group aims to translate these core PPHG continues to expand its portfolio
You, By Us.” All three are linked by a com- messages into real-world experiences at selectively with exciting new properties
mitment to be sincere in everything the its properties around the world. opening over the next few years. These
group does. Recognizing that the key to its success is include Pan Pacific properties in London
As PPHG’s signature brand with locations its people, PPHG is focused on “heart-ware,” (2020), Jakarta (2020), Singapore (2021) and
in major cities, Pan Pacific wants its hotels reinforcing true hospitality through instilling Nha Trang (2021), as well as PARKROYAL
to be viewed as safe harbors, where guests a trustworthy service culture and provid- properties in Melaka (2019), Langkawi
can find their balance with its dependable ing service excellence and brand training (2020) and Jakarta (2021).
and gracious service. throughout the organization globally. “There is no doubt that PPHG is well
Meanwhile, PARKROYAL’s “The Best of In meeting the trends and needs of trav- advanced on an exciting journey, with
You, By Us” positioning reflects the brand’s elers, PPHG has introduced a new web- strong foundations that will allow it to build
mission to provide welcoming hospitality site with optimized booking facilities and and grow into a formidable hospitality
with a genuine human connection. online customer experience, incorporating player in the Asia-Pacific region,” says Tan.
6 Asia’s Leading Business Hotels
РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
India’s 100 Richest
KRISHNA KUMAR BANGUR
Historical Arc
A shift in steel technology has a family-run leader in graphite electrodes
humming. Even a wary patriarch is making bigger plans.
BY ANURADHA RAGHUNATHAN
hina’s decision in 2017 to lose our heads. I feel more of a sense grade technology than more developed
to replace highly pollut- of responsibility now.” economies).
ing blast furnaces with he company’s revenue doubled For all China’s push on electric arc
electric arc furnaces to to $507 million for iscal 2018, and it furnaces—it is aiming to have 20% of
Cmake steel reverberated reported a 14-fold rise in net proit to its steel made in lower-polluting mills,
all the way to Kolkata, where Graphite $159 million. hanks to that stellar per- from 9% currently—it holds no pros-
India, a maker of graphite electrodes, formance, it made a maiden appearance pect of direct sales for the otherwise
is headquartered. he producer of this on Forbes Asia’s Best Under a Billion internationally minded Graphite India.
niche carbon product for the electric- companies list this year. But with $223 he insular industry there doesn’t invite
arc process suddenly found itself in the million cash on the books—as of the entry. As Bangur laments, “China is a
spotlight as global demand spiked. June quarter—Bangur is still cautious. black box. Sometimes nobody has a clue
he company’s shares have tripled “We won’t mindlessly spend this cash,” as to what China is all about.”
in rupee terms in the past 12 months, he says. “We are in a venture—not an But its winds blow far. Beyond the
earning Krishna Kumar Bangur, who adventure.” furnaces shit, China also cut back on
owns a 65% stake, a debut spot on the Bangur believes that it was this steel exports—out of its own environ-
top 100. He’s listed at No. 91 with $1.7 conservative approach that contributed mental concerns as well as pushback
billion. Despite the windfall, Ban- to the transformation of his nondescript from the European Union, the U.S. and
gur, 58, has jubilation on hold. “It’s maker of graphite electrodes into the India on steel dumping. his stoked
a feel-good factor—nothing else,” he world’s third-largest outit, notching steel production in other parts of the
says from his oice in Kolkata’s busy a 12% global market share (excluding world where electric arc furnaces are
Chowringhee Road. “We cannot aford China, which has relied on a lower- used for 45% of steelmaking.
66 | FORBES ASIA OCTOBER 2018
RAJAT GHOSH FOR FORBES “We are in a venture—
not an adventure”:
Graphite India Chairman
Krishna Kumar Bangur.
OCTOBER 2018 FORBES ASIA | 67
India’s 100 Richest
MOVING OUT
AFFLUENT ABROAD
Debuting billionaire Krishna Kumar Bangur, a Singapore
permanent resident since 2012, is part of a growing tribe
of Indian tycoons opting for a foothold overseas while
retaining business ties to India. “This is a subject we get
consulted about every so often for a variety of reasons,”
says Dinesh Kanabar, CEO of Mumbai tax and regulatory
firm Dhruva Advisors. “People want to diversify their
assets or their businesses overseas or are seeking more
tax-friendly options.”
With its low corporate tax rates of 17% (compared with
India’s 25% to 30%) and exemptions on income earned over-
seas, Singapore is among the more popular havens.
Shyam Bhartia (No. 75), founder and chairman of Jubilant
Bhartia Group, a conglomerate with interests in pharma,
food and auto, has been living in Singapore on an employ-
ment pass since 2015. (Younger sibling Hari remains in New
Delhi). The 65-year-old tycoon who runs Jubilant Pharma, a
pharma unit of his listed life-sciences arm, launched a
$300 million bond o ering in 2016. Now he’s seeking a Sin-
gapore listing. An earlier example was drug magnate
Malvinder Singh, whose wealth has since been squeezed
amid a series of legal disputes.
While these migrants have kept Indian citizenship, some
have given it up. Property developer Surendra Hiranandani,
who has roots in Mumbai real estate and last featured in the
top 100 in 2014, has become a citizen of tax-friendly Cyprus.
His son Harsh remains stationed in India, while his daughter
Neha has moved to London.
Hiranandani’s nephew Darshan has opted to live in Dubai
for the past 14 years, though he spends about a week every
month in India. He’s the CEO of H-Energy, which builds
Surendra Hiranandani, chairman, House of Hiranandani.
natural-gas terminals and pipelines in western and eastern
India. (His father, Niranjan Hiranandani, is also a former for example, or even to register property, remain complex.
lister.) To maintain his status as a nonresident for personal (Singapore ranks No. 2 on the list; Cyprus is No. 53.)
tax purposes, Darshan has to ensure that his total stay in A handful on our rich list are foreign citizens for var-
India doesn’t exceed 183 days a year. “I have a spreadsheet ied reasons: Construction magnate Pallonji Mistry (No. 5),
that I’m constantly updating,” he laughs. whose wife, Patsy, is an Irish citizen, opted for that country’s
India’s reputation as a diicult place to do business is nationality in 2003; and Sunder Genomal (No. 60), who runs
one reason why some tycoons opt for such a peripatetic the Jockey franchise in India, is a citizen of the Philippines,
existence. While the country moved up several notches in where his family has decades-old business ties and where he
the World Bank’s Ease of Doing Business ranking in 2018, was born and raised.
to 100 from 130 a year earlier, rules for starting a business, — Naazneen Karmali & Anuradha Raghunathan
Over the next ive years, demand for gal Nevatia in a Macquarie Research graphite electrode industry was recov-
graphite electrodes is expected to out- report in June. “With no substitute, ering from a spell of weak demand.
strip supply, keeping prices high. (Ca- growing demand and limited new sup- From 2011 to 2016, China was pump-
pacity is expected to grow 8% annually, ply, graphite electrodes is now more a ing steel—made in blast furnaces—into
‘
but demand should grow 12%.) “We see ‘strategic resource’ than a commodity.’ ” global markets and had racked up a
this uplit as structural,” noted Suman- he China turn came when the 50% market share. his caused demand
68 | FORBES ASIA OCTOBER 2018
for graphite electrodes to tumble and debuts on the India 100 at No. 99 with a even as he studied commerce as an
prices to halve. As factories across the fortune of $1.5 billion.) undergrad. He also worked on many a
globe started to shut, 20% of global Even though graphite electrodes are shop floor.
capacity (excluding China) was wiped being used in lower-polluting plants, In 1991 the extended Bangur family
out. he industry started consolidating, there are environmental concerns about split and his branch got the electrodes
and in that shu e Graphite India, the components’ factories themselves. business, among others. Another
which used to be the ith-largest player,
moved to No. 3.
While the rest of the industry bled, Bangur’s father’s death in 1994
Graphite India continued to make prof- propelled him into the hot seat at age 34.
its because it wasn’t saddled with debt.
he company sells more than half its “I became head of the family too early
volume in India but also exports to the in my life—but such is life.”
U.S., Europe, the Mideast and Southeast
Asia. “We’ve never made a loss in our
entire history,” notes Bangur. He even In September, residents near Graphite prominent Bangur clan, led by patriarch
added 20,000 tons of capacity at a plant India’s Bengaluru plant protested Benu Gopal Bangur (No. 22) of Shree
in West Bengal at a cost of $43 million against air emissions and the Karnataka Cement, inherited the cement unit
in 2014. state pollution control board conducted Post-split, a partnership with Great
Indian rival HEG—now the fourth- an inspection. A report is awaited from Lakes Carbon of the U.S. dating to
largest player in the world—was also the board’s chief. he board had issued the 1960s unraveled. “We were only a
hit by the downturn and sufered losses a closure order in 2012, which the domestic player until then and were not
in iscal 2016 (for the irst time in 39 company contested in an appeals court. even equipped to produce high-grade
years) and iscal 2017. But the Delhi It won, but the residents appealed to electrodes,” recalls Bangur. “We had to
company has since recovered to make the National Green Tribunal (for cases change the product mix, go into new
net proits of $166 million for iscal relating to environmental protection) markets and build market share.”
2018. (HEG’s chairman and manag- and the matter is pending. His father’s death in 1994 propelled
ing director Ravi Jhunjhunwala also Scalability is also a question. he lim- him into the hot seat at age 34. “I be-
iting factor is access to the key raw mate- came head of the family too early in my
rial, needle coke, which is made from life—but such is life,” he says. (He has
SECTOR BREAKDOWN crude and is sourced from a clutch of an older sister who is not involved in
THE ASIA-PACIFIC REGION NOW manufacturers in the U.S. and Japan. he the business.)
COMMANDS MORE THAN A THIRD OF
THE GLOBAL GRAPHITE-ELECTRODE limited supply is also subject to diversion Graphite India as it is now was
CAPACITY. to lithium-ion battery makers. formed in 2001 through the merger of
So Bangur is looking at diversifying two companies. Bangur slowly built
MALAYSIA
RUSSIA 4% beyond graphite electrodes into value- up and in 2004 took over a German
% added graphite and carbon products. electrode-making company in bank-
In September he agreed to buy a 46% ruptcy and turned it around.
stake in Graphene Corp. of the U.S. for To further his business interests
up to $18.6 million in cash. Graphene Bangur took permanent residency in
JAPAN EUROPE is a carbon-based product that could be Singapore in 2012, joining a grow-
14% 30% used in everything from touchscreens ing tribe of Indian tycoons who have
to energy storage and aerospace. “It’s a sought such dual credentials (see
INDIA new idea,” says Bangur. “If it develops box, opposite). “We may be looking
20% well it can become another Graphite at global opportunities, and it will be
India. But it has many years to go.” easier to raise capital internationally,”
AMERICA
25% Bangur’s life in business goes back he says.
to 1976 when he turned 16. A fifth- For all his instinctive caution, the
generation scion of a storied family veteran of a long-volatile sector sees
that was into everything from jute to new light. “his change is quite diferent
real estate, he got an early introduction from past changes,” Bangur says. “I am
FIGURES ARE FOR 2017, EXCLUDING CHINA.
SOURCES: BLOOMBERG; MACQUARIE RESEARCH. to different businesses from his elders convinced that this is here to stay.” F
OCTOBER 2018 FORBES ASIA | 69
India’s 100 Richest
BY NAAZNEEN KARMALI
A Few Rise in a Flat Year
Bu ett, broadband and biotech lift some of the lofty.
ijay Shekhar Sharma,
India’s youngest billionaire
and founder of mobile pay-
ments giant Paytm, seems
Vunstoppable. In August,
billionaire investor Warren Bufett’s Berk-
shire Hathaway invested $300 million in
Sharma’s irm, joining a galaxy of marquee
investors such as Alibaba and SotBank.
“It’s an endorsement of the India story. I
feel more responsibility than ever before,”
says Sharma of Bufett’s bet, which valued
Paytm north of $10 billion and boosted the
40-year-old’s net worth.
A rout in the rupee—down 13% since
we last measured fortunes a year ago—
practically wiped out the Indian stock
market’s 14% rise in the same period. Even
so, 11 of the nation’s 100 richest saw their
fortunes jump by $1 billion or more. Oil
and gas tycoon Mukesh Ambani added
$9.3 billion amid the continuing success of
his Reliance Jio broadband telco service. He
remains at No. 1 for the 11th year in a row.
he biggest gainer percentage wise is
biotech queen Kiran Mazumdar-Shaw, Vijay Shekhar Sharma is India’s youngest billionaire and the founder of Paytm.
one of only 4 women on the list, who saw Among the ive new faces are Krishna Kumar Bangur,
her wealth soar by two thirds. Shares of her Biocon jumped who controls Graphite India, which is beneiting from acute
when it received approval from the U.S. Food & Drug Admin- demand from the steel sector for its graphite electrodes (see
istration last December for a cancer drug codeveloped with story, p. 66); and south Indian infrastructure magnate P.P.
Mylan and have nearly doubled in the past 12 months. Reddy of Megha Engineering & Infrastructure.
Overall, the top 100 have eked out only a 2.7% gain in their Eight dropped of the list, including Rana Kapoor, whose
combined wealth to $492 billion since our 2017 list. Close to Yes Bank shares dropped 29% in one day ater the Reserve
half are poorer, six of them by $1 billion or more. Among them Bank of India said he must step down as CEO in January. he
is Acharya Balakrishna, cofounder of herbal consumer goods regulator’s move was reportedly a response to inadequate dis-
maker Patanjali Ayurved, whose fortune fell by more than a closure of bad loans, which Yes Bank has denied. he fortune
fourth as sales slowed. Higher fuel prices took a toll on the of paints tycoon Ashwin Choksi, who died in September, is TOMOHIRO OHSUMI/GETTY IMAGES
wealth of Kapil & Rahul Bhatia, the father-son pair behind In- now listed under his family.
diGo, the country’s biggest airline, which at least gained market Additional reporting by Megha Bahree, Sean Kilachand and
share as rivals reeled under inancial woes. Anuradha Raghunathan.
70 | FORBES ASIA OCTOBER 2018
THE LIST
1
MUKESH AMBANI
$47.3 BILLION S
RELIANCE INDUSTRIES
AGE: 61
2
AZIM PREMJI
$21 BILLION S
WIPRO AGE: 73
3
LAKSHMI MITTAL
$18.3 BILLION S
ARCELORMITTAL AGE: 68
4
HINDUJA BROTHERS
$18 BILLION
ASHOK LEYLAND AGE: 82, 77, 72, 67
5
PALLONJI MISTRY
$15.7 BILLION
SHAPOORJI PALLONJI GROUP
AGE: 89
6
SHIV NADAR
$14.6 BILLION
HCL TECHNOLOGIES AGE: 73
7
GODREJ FAMILY
$14 BILLION
GODREJ GROUP
8
DILIP SHANGHVI
$12.6 BILLION
SUN PHARMACEUTICAL INDUSTRIES
AGE: 63
9
KUMAR BIRLA
$12.5 BILLION
ADITYA BIRLA GROUP
AGE: 51
10
GAUTAM ADANI
$11.9 BILLION
ADANI PORTS & SEZ AGE: 56
11
RADHAKISHAN DAMANI
$11.2 BILLION S
AVENUE SUPERMARTS AGE: 63
12
UDAY KOTAK
$10.8 BILLION
KOTAK MAHINDRA BANK
AGE: 59
13
BURMAN FAMILY
$8.4 BILLION S
DABUR
14
ANAND BURMAN: RURAL LATHER SAVITRI JINDAL
$8.35 BILLION S
Consumer-goods outfit Dabur, where Burman is chairman, benefited from buoyant rural demand for its popular O.P. JINDAL GROUP
hair, skin and oral-care herbal products. It also has healthy export sales, accounting for more than a fourth of its AGE: 68
$1.2 billion revenue. Wealth is shared by five branches of the Burman family, which also has myriad other interests.
Recently, the family teamed up with motorcycle magnate Pawan Munjal (No. 31) to bid for Delhi hospital chain Fortis
SUP MORE THAN 10% TDOWN MORE THAN 10%
Healthcare but dropped out of the race. ÌNEW TO LIST 3RETURNEE
HINDUSTAN TIMES/NEWSCOM
OCTOBER 2018 FORBES ASIA | 71
India’s 100 Richest
SUNDER GENOMAL: LONG IN THE SHORTS
Genomal, who controls publicly listed Page Industries, doubled his wealth in the past 12 months. In June, Jockey International extended its licensing
deal with Page to 2040, causing the company’s shares to jump. Genomal has also added new stores and launched an underwear line for young girls.
Jockey’s association with the Genomal family goes back six decades, to when Sunder’s father, Genomal Verhomal, was living in the Philippines and
imported and sold Jockey underwear to American soldiers stationed there. The Indian partnership started in 1994.
72 | FORBES ASIA OCTOBER 2018
THE LIST
15
CYRUS POONAWALLA
$8.3 BILLION
SERUM INSTITUTE OF INDIA
AGE: 77
16
BAJAJ FAMILY
$7.6 BILLION
BAJAJ AUTO
17
SUNIL MITTAL
$7.2 BILLION T
BHARTI AIRTEL AGE: 60
18
NUSLI WADIA
Nirav Modi Vijay Mallya $6.7 BILLION S
BRITANNIA INDUSTRIES
AGE: 74
EXILED LIMBO
19
MADHUKAR PAREKH
India’s Most Wanted PIDILITE INDUSTRIES AGE: 72
$5.75 BILLION S
20
ot long ago, third-generation diamond Meanwhile, a special court in Mumbai is seeking VIKRAM LAL
jeweler Nirav Modi’s glittering creations to declare both Mallya and Modi as fugitive eco- $5.7 BILLION T
EICHER MOTORS AGE: 76
Nwere being launted by celebrities such as nomic ofenders. Mallya in his reply has denied that
21
Kate Winslet and Viola Davis. Modi is the most no- he is one. Modi’s lawyer said his client would reply
VIVEK CHAAND SEHGAL
table dropof from this year’s top 100. he jeweler’s on October 29. he Central Bureau of Investigation $5.5 BILLION
diamond empire crumbled this year when he was and the Enforcement Directorate, a federal agency MOTHERSON SUMI SYSTEMS AGE: 62
accused of defrauding state-owned Punjab National tasked with investigating inancial crimes, are 22
BENU GOPAL BANGUR
Bank to the tune of $2 billion, a charge he denies. looking to bring back 26 others under the new law,
$5.35 BILLION T
Modi let the country before the scandal became including six women. (None feature in the top 100.) SHREE CEMENT AGE: 87
public and an arrest warrant issued. Ater several While the well-of in India have enjoyed a 23
rumored sightings in various countries, Modi is certain immunity in the past, they were spooked KUSHAL PAL SINGH
$5.3 BILLION
reportedly now in the U.K., where the Indian gov- by the arrest in 2014 of politically well-connected DLF AGE: 87
ernment is seeking his extradition. businessman Subrata Roy of Sahara India Pariwar, a
24
Former billionaire Vijay Mallya, who owes group with interests in inancial services, educa- AJAY PIRAMAL
Indian banks around $1.4 billion for loans to his tion, hospitality and property. Roy got into a tangle $5 BILLION
PIRAMAL ENTERPRISES
now-defunct Kingisher Airlines, is embroiled in ex- with the stock market regulator for allegedly raising AGE: 63
tradition proceedings in a London court. he liquor money by issuing debentures without its approval
25
baron let for the U.K. in March 2016, before the and was ordered to refund thousands of small ACHARYA BALKRISHNA
banks could close in on him. Mallya issued a state- investors. Roy, who once owned the Plaza Hotel $4.8 BILLION T
PATANJALI AYURVED AGE: 46
ment in June bemoaning the fact that he’d become in New York and has denied any wrongdoing, was
26
the “poster boy” for bank default and “a lightning jailed for two years until 2016 for contempt of court.
M.A. YUSUFF ALI
rod of public anger.” He added, “I have made and He is now on interim bail and claims that 95% of $4.75 BILLION
LULU GROUP AGE: 62
continue to make every efort, in good faith to settle Sahara’s debenture holders have been repaid.
with the public sector banks.” he London court says Zuliquar Memon, managing partner at 27
SUBHASH CHANDRA
it will make its extradition decision on December 10. Mumbai law irm MZM Legal, which specializes in $4.7 BILLION T
Embarrassed by these scandals, the Narendra defending those charged with white-collar crimes, ESSEL GROUP
AGE: 67
Modi-led government passed a law in July targeting commends the government for introducing the
the likes of Mallya and Modi (no relation to the tough, new law but says he isn’t certain how efec- 28
PANKAJ PATEL
PM). Under the Fugitive Economic Ofenders Act, tive it will be. “he power to seize assets unilaterally $4.4 BILLION T
anyone labeled an economic ofender risks having could provide the accused with their best defense, CADILA HEALTHCARE
AGE: 65
his assets, in India and overseas, coniscated and that it is an unfair and biased legal system.” Modi
sold of to clear his debts. he law applies to cases and Mallya are probably counting on that.
SUP MORE THAN 10% TDOWN MORE THAN 10%
where the fraud amounts to more than $14 million. —Anuradha Raghunathan ÌNEW TO LIST 3RETURNEE
ANIRUDDHA CHOWDHURY/MINT VIA GETTY IMAGES; CHRIS RATCLIFFE/BLOOMBERG
OCTOBER 2018 FORBES ASIA | 73
India’s 100 Richest
BY MEGHA BAHREE
1 2
Location,
Location,
Location
n the heart of New Delhi lies an exclusive, 5,800-acre enclave of sprawling colonial-era
mansions set back from broad, tree-lined roads. Known as the Lutyens Bungalow Zone,
Iat er the British architect Sir Edward Landseer Lutyens, who designed the neighborhood in
1912, it is the focal point of Indian power and prestige.
Home to the country’s prime minister, president and several high-ranking government and
military oicials, it is also a much-coveted address among India’s superwealthy. While the bulk
of the area is government-owned, more than a dozen of the top 100 richest own expansive,
private estates there.
Intriguing street names include Prithviraj Road (named ater a 12th-century king, Prith-
viraj Chauhan) and Tees January Marg (30th January Road in Hindi, the day in 1948 when
Mahatma Gandhi was assassinated). he road houses Gandhi’s memorial, his last abode before
his death.
Delhi billionaires such as telecom tycoon Sunil Mittal and paints magnate Kuldip Singh LUTYENS
Dhingra have their primary homes in Lutyens, while for nonresidents such as steel barons IN NEW DELHI
Lakshmi Mittal, who lives in London, and Sajjan Jindal from Mumbai, a Lutyens mansion
is an iconic addition to their real estate portfolios. Property billionaire and longtime resident inspiration from the Palace of Versailles
Kushal Pal Singh and his family seem to prefer Lutyens over anyplace else; Singh’s daughter and French-American military engineer
reportedly paid $65 million for her house in 2016, and his granddaughter snapped up a bun- Pierre Charles L’Enfant’s city plan for
galow nearby for$75 million last year. Washington, D.C.
he country’s British rulers commissioned Lutyens to create the neighborhood when Stringent rules banning major changes
they decided to move the country’s capital from Calcutta to Delhi early in the last century. to the architecture—or adding new build-
he layout is based on the so-called Garden City principles of a self-contained commune ings—have helped the enclave maintain its
encased within a greenbelt. It includes a central, ceremonial avenue bookended by the aura of exclusivity and grandeur. “h ere’s
President’s House (Rashtrapati Bhavan) and India Gate, a war memorial, surrounded by legacy, there’s history and there’s scarcity.
government buildings and residential bungalows. he architect is believed to have drawn here are only 65 privately owned bunga-
74 | FORBES ASIA OCTOBER 2018
THE LIST
29
SAMEER GEHLAUT
$4.2 BILLION S
INDIABULLS GROUP AGE: 44
30
MICKY JAGTIANI
$4.1 BILLION
3 4 5 6 7 LANDMARK GROUP
AGE: 67
31
PAWAN MUNJAL
$4.05 BILLION T
HERO MOTOCORP AGE: 64
32
HARSH MARIWALA
8 $3.95 BILLION
MARICO AGE: 67
33
RAVI PILLAI
$3.9 BILLION
RP GROUP AGE: 65
34
KULDIP & GURBACHAN
SINGH DHINGRA
9 $3.85 BILLION
BERGER PAINTS INDIA
AGE: 71, 68
35
SUDHIR & SAMIR MEHTA
$3.8 BILLION S
TORRENT GROUP
AGE: 64, 55
36
10 KALANITHI MARAN
$3.75 BILLION T
SUN TV NETWORK AGE: 53
37
ANIL AGARWAL
$3.73 BILLION S
VEDANTA RESOURCES
AGE: 65
11 38
B.R. SHETTY
$3.7 BILLION
NMC HEALTH AGE: 76
39
KIRAN MAZUMDAR-SHAW
$3.6 BILLION S
BIOCON AGE: 65
40
12 HASMUKH CHUDGAR
$3.57 BILLION S
1. HARI BHARTIA (NO. 75) 5. KULDIP DHINGRA (NO. 34) 9. LAKSHMI MITTAL (NO. 3) INTAS PHARMACEUTICALS AGE: 85
2. KUMAR BIRLA (NO. 9) 6. SANJIV GOENKA (NO. 83) 10. SUNIL MITTAL (NO. 17) 41
3. ANAND BURMAN (NO. 13) 7. RAVI JAIPURIA (NO. 76) 11. SHASHI RUIA (NO. 49) KAPIL & RAHUL BHATIA
4. JAI HARI DALMIA (NO. 84) 8. SAJJAN JINDAL (MOM, NO. 14) 12. K.P. SINGH (NO. 23) $3.55 BILLION T
INTERGLOBE AVIATION AGE: 86, 58
42
lows,” says Mudassir Zaidi, executive director-north implemented, would lead to a rash of construction, RAJENDRA AGARWAL
$3.5 BILLION S
with Knight Frank India. Built on plots ranging says Santhosh Kumar, vice chairman of Anarock
MACLEODS PHARMACEUTICALS
from 1 to 4 acres, the bungalows have seen prices Property Consultants, that would destroy “Delhi’s AGE: 59
soar in recent years. biggest green lung.” And coarsen Lutyens’ precious
SUP MORE THAN 10% TDOWN MORE THAN 10%
A long-pending proposal to relax rules, if exclusivity. ÌNEW TO LIST 3RETURNEE
MAP: ANAROCK PROPERTY CONSULTANTS
OCTOBER 2018 FORBES ASIA | 75
India’s 100 Richest
RAMESH JUNEJA: BOOSTER SHOT
Magnate’s fortune jumped after he sold a 10% stake in his Mankind Pharma to Indian private equity firm ChrysCapital for $320 million. The
deal boosted Mankind’s valuation to $3.2 billion. ChrysCapital was an early investor in the firm but cashed out in 2015 only to reenter again as THE TIMES OF INDIA GROUP
Mankind prepares for an IPO. A champion of low-cost generics, Juneja, who shares his wealth with his family, uses Bollywood stars to market
his products.
76 | FORBES ASIA OCTOBER 2018
THE LIST
43
VINOD & ANIL RAI GUPTA
$3.49 BILLION S
HAVELLS INDIA AGE: 73, 49
44
ASHWIN DANI
$3.45 BILLION
ASIAN PAINTS AGE: 75
45
KARSANBHAI PATEL
$3.35 BILLION
NIRMA AGE: 74
46
SAMPRADA SINGH
$3.3 BILLION
ALKEM LABORATORIES AGE: 92
47
P.P. REDDY
$3.1 BILLION Ì
MEGHA ENGINEERING & INFRA-
STRUCTURE AGE: 61
48
JITENDRA VIRWANI: REIT HEAT CHANDRU RAHEJA
$3 BILLION S
India’s stagnant real estate market is astir with the prospect of imminent action. Bangalore developer Virwani’s Embassy K. RAHEJA CORP. AGE: 78
Property Development, together with private equity firm Blackstone, will soon be listing India’s first-ever REIT. The
o ering is expected to raise close to $728 million. Their jointly owned Embassy Oice Parks is among the country’s largest 49
commercial property portfolios, with 33 million square feet of oices and hotels. It has a roster of multinational tenants such SHASHI & RAVI RUIA
as Google, IBM and Warburg Pincus. Virwani’s son Karan is WeWork’s partner in India. $2.9 BILLION T
ESSAR GROUP AGE: 74, 69
50
P.V. RAMPRASAD REDDY
$2.8 BILLION T
AUROBINDO PHARMA AGE: 60
51
CHOKSI FAMILY
$2.78 BILLION
ASIAN PAINTS
52
MANGAL PRABHAT LODHA
$2.77 BILLION T
LODHA GROUP AGE: 62
53
MURALI DIVI
M.M. MURUGAPPAN: $2.76 BILLION S
DIVI’S LABORATORIES AGE: 67
SWEET AND LOWER
54
South India’s storied Murugappa YUSUF HAMIED
group saw a change at the top when $2.75 BILLION
M.M. Murugappan, 62, took charge as CIPLA AGE: 82
executive chairman in February. He
succeeded his cousin A. Vellayan, who 55
stepped down from the 118-year-old, RAMESH JUNEJA
$5 billion (revenue) conglomerate after $2.71 BILLION S
turning 65. Murugappan, who used to MANKIND PHARMA AGE: 63
be vice chairman and in charge of the 56
engineering business, has vowed to VIJAY CHAUHAN
focus on profitability and cash flows. $2.7 BILLION
With nine listed companies, the group PARLE PRODUCTS AGE: 82
saw an uptick in its financial services 57
units, but its sugar arm, EID Parry, was BABA KALYANI
hammered by the global sugar glut. A $2.68 BILLION T
chemical engineer with a degree from BHARAT FORGE AGE: 69
the University of Michigan, Murugappan
has a board seat at No. 88 Anand
SUP MORE THAN 10% TDOWN MORE THAN 10%
Mahindra’s auto conglomerate. ÌNEW TO LIST 3RETURNEE
OCTOBER 2018 FORBES ASIA | 77
India’s 100 Richest
ANIL AGARWAL:
GOING PRIVATE
The mining mogul is taking
his London-listed Vedanta
Resources private after 15 years
as a public company. Agarwal,
who was reportedly on a
Mediterranean cruise with his
family when he announced the
$1 billion o er in July, agreed
to pay a 27% premium for the
one third of the metals firm
he doesn’t already own. The
tycoon was quoted as saying his
decision to privatize Vedanta
had nothing to do with troubles
faced by the company’s copper
smelter in south India, where 13
protesters were killed by police
in May. The incident resulted in
closure of the smelter.
M.A. YUSUFF ALI:
FLOOD OF GOODWILL
Dubai-based retailing tycoon of the LuLu
Group inadvertently sparked a diplomatic
row after floods swept through his native
Kerala state and he lobbied the UAE
government, which o ered a $100 million WALDO SWIEGERS/BLOOMBERG (TOP); THE TIMES OF INDIA GROUP
donation for rehabilitation. While the chief
minister of Kerala was eager to accept the
grant and tweeted about it, the Hindu-
leaning federal government snubbed the
o er, saying it was not seeking foreign
assistance. Yusu Ali donated $2.6 million
of his own money for relief e orts.
78 | FORBES ASIA OCTOBER 2018
THE LIST
58
RAJAN RAHEJA
$2.67 BILLION
EXIDE INDUSTRIES AGE: 64
59
GUPTA FAMILY
$2.66 BILLION T
LUPIN
60
SUNDER GENOMAL
$2.65 BILLION S
PAGE INDUSTRIES AGE: 64
61
RAKESH JHUNJHUNWALA
$2.6 BILLION
RARE ENTERPRISES AGE: 58
62
SUNNY VARKEY
$2.55 BILLION
GEMS EDUCATION AGE: 61
63
ABHAY VAKIL
$2.53 BILLION
ASIAN PAINTS AGE: 67
64
LEENA TEWARI
$2.52 BILLION S
USV INDIA AGE: 61
65
JAIN FAMILY
$2.5 BILLION T
BENNETT COLEMAN & CO.
66
SUNIL VASWANI
$2.46 BILLION
STALLION GROUP AGE: 55
67
RAJESH MEHTA
$2.45 BILLION
RAJESH EXPORTS AGE: 54
68
ANIL AMBANI
$2.44 BILLION T
RELIANCE COMMUNICATIONS
AGE: 59
69
KISHORE BIYANI
$2.4 BILLION T
FUTURE GROUP AGE: 57
70
AMALGAMATIONS GROUP FAMILY
$2.37 BILLION
TRACTORS & FARM EQUIPMENT
71
JITENDRA VIRWANI
$2.35 BILLION
RAVI JAIPURIA: CAFFEINE CONFLICT? EMBASSY PROPERTY DEVELOPMENT
Coca-Cola’s $5.1 billion purchase of retail chain Costa Co ee from the U.K.’s Whitbread creates an awkward AGE: 52
equation in India. Costa’s Indian franchise is run by Ravi Jaipuria, No. 76, who is one of PepsiCo’s largest bottlers
globally. Jaipuria’s listed outfit, Varun Beverages, named after his son, has 26 bottling plants including 6 overseas in
Africa, Nepal and Sri Lanka. The cola king’s privately held Devyani International, a Pizza Hut franchisee named after
his daughter, brought Costa Co ee to India in 2005. Jaipuria denies reports that he is willing to let the chain go due
to sluggish sales and says it is early days yet as the deal is expected to close only in 2019. “We have no plans to sell
SUP MORE THAN 10% TDOWN MORE THAN 10%
it and would like to continue the business, if there is no conflict.” That’s a big “if.” ÌNEW TO LIST 3RETURNEE
VISHAL KOUL/OUTLOOK
OCTOBER 2018 FORBES ASIA | 79
India’s 100 Richest
TARANG JAIN: AUTO PART PILOT
The twin of Anurang Jain (No. 72) and nephew of two-wheeler tycoon Rahul Bajaj (No. 16) zooms into the top 100 after listing his 30-year-old auto-
parts firm, Varroc Engineering, in July. Varroc makes headlamps and other parts for two- and-three-wheelers for marquee clients such as Ford,
Volkswagen Group, Bajaj Auto and Yamaha Motor. The $1.6 billion (revenue) firm, which was founded in 1988 as a maker of plastic and polymer parts
for Bajaj Auto, is aiming for revenue of $3 billion by 2020, says Tarang.
P.V. RAMPRASAD REDDY:
BEST BUY?
Farmer’s son Reddy (who’s not related to the other pharma
Reddy clan, No. 93) made a splash in September when
his Hyderabad generics firm, Aurobindo Pharma, said it
was buying the dermatology and oral-solids business of
Sandoz in the U.S. for $900 million. The deal, Aurobindo’s
biggest overseas acquisition to date, will make the company
the second-largest generics player in the U.S. after Teva.
The company has a large U.S portfolio with 342 approved
generic drugs and gets more than 90% of its $2.6 billion
annual revenue from international markets. Even though
Aurobindo’s shares rose in the face of a U.S. generics slump
this past year, a weaker rupee wiped out those gains.
80 | FORBES ASIA OCTOBER 2018
THE LIST
72
ANURANG JAIN
$2.3 BILLION S
ENDURANCE TECHNOLOGIES
AGE: 56
73
N.R. NARAYANA MURTHY
$2.2 BILLION S
INFOSYS AGE: 72
74
VIJAY SHEKHAR SHARMA
$2.15 BILLION S
PAYTM AGE: 40
75
SHYAM & HARI BHARTIA
$2.1 BILLION S
JUBILANT BHARTIA GROUP AGE: 65, 61
76
RAVI JAIPURIA
$2.07 BILLION S
RJ CORP AGE: 63
77
MURUGAPPA FAMILY
$2.06 BILLION T
MURUGAPPA GROUP
78
HARSH GOENKA
$2.05 BILLION T
RPG GROUP AGE: 60
79
SENAPATHY GOPALAKRISHNAN
$2.04 BILLION S
INFOSYS AGE: 63
80
NANDAN NILEKANI
$1.96 BILLION S
INFOSYS AGE: 63
81
M.G. GEORGE MUTHOOT
$1.95 BILLION T
MUTHOOT FINANCE AGE: 68
82
ABHAY FIRODIA
$1.94 BILLION T
FORCE MOTORS AGE: 73
83
SANJIV GOENKA
$1.9 BILLION
RP-SANJIV GOENKA GROUP AGE: 57
84
JAI HARI & YADU HARI DALMIA
$1.89 BILLION T
DALMIA BHARAT AGE: 74, 71
85
LACHHMAN DAS MITTAL
$1.87 BILLION
SONALIKA GROUP AGE: 87
86
RISHMA KAUR: JAPANESE HUES RANJAN PAI
$1.86 BILLION
This heiress of a paint fortune is the fifth generation in her family’s empire, which dates to 1898. Executive director at Berger MANIPAL GROUP AGE: 45
Paints India, Kaur oversees business development and also sits on the boards of its overseas units in Poland, Nepal and
Bangladesh. She has worked at Berger for 15 years and focuses on large projects. Berger teamed up last year with Chugoku
SUP MORE THAN 10% TDOWN MORE THAN 10%
Marine Paints and Rock Paint, both Japanese. It has a joint venture with Nippon Paint that is more than a decade old. ÌNEW TO LIST 3RETURNEE
OCTOBER 2018 FORBES ASIA | 81
India’s 100 Richest
BY NAAZNEEN KARMALI
Billionaires Left Out
A
billion dollars no longer guarantees a spot in the top 100 club. More than 30 candidates with estimated wealth of $1 billion or
more were let of the list this year. Despite recent swings in the benchmark Sensex, ten-igure fortunes continue to be made and
a stock-market listing remains a route to riches. Four of these 6 new faces have public companies and one is planning to list.
Ramesh Kumar Dua
is on sound footing.
RAJESH MEHRA: 60 The company has introduced a range of lighting politics. A member of the ruling Bharatiya Janata
$1.4 billion fixtures, under the Jaquar brand. Party, Gautam was elected to parliament for
JAQUAR GROUP four consecutive terms, from 1991 to 2004. She
Building on a company started by their father, SHEELA GAUTAM: 86 also served on several government committees,
Mehra and his brothers launched Jaquar, a $1.05 billion including those related to health and family
premium brand of bathroom fittings, in 1986. SHEELA FOAM welfare, railways, petroleum and natural gas.
When distributors balked at the steep price, A good night’s sleep is almost guaranteed for
they set up their own stores and o ered repairs Sheela Gautam. Born into a family of diplomats, RAMESH KUMAR DUA: 64
and replacements. Jaquar, named after their she is founder and chairman emeritus of listed $1.05 billion
grandmother Jai Kaur, is now among the leading Sheela Foam, a maker of mattresses branded as RELAXO FOOTWEARS
brands of bathroom fittings and holding its own Sleepwell, whose shares have more than doubled Dua’s Delhi-headquartered Relaxo Footwears
against multinational rivals. The range is designed since its 2016 IPO. It has 15 factories, including 5 in is one of the leading shoemakers to the nation,
to withstand Indian conditions such as water with Australia where it owns Joyce Foam, a company churning out more than 600,000 pairs daily from MADHU KAPPARATH/FORBES INDIA
high iron content. In 2015 they renamed their acquired in 2005. Gautam set up the $280 million nine factories in north India. The $302 million
enterprise Jaquar Group, which reported sales (revenue) company in 1971; two decades later her (revenue) company, famous for its flip-flops, sold
of $496 million in the year ended March 2018. son Rahul took charge so that she could focus on 157 million pairs in the year ended March 2018
82 | FORBES ASIA OCTOBER 2018
THE LIST
Sheela Gautam sleeps Sandeep Engineer: 87
well at night. His family name is SALIL SINGHAL
$1.85 BILLION
his career fate. PI INDUSTRIES AGE: 71
88
ANAND MAHINDRA
$1.81 BILLION S
MAHINDRA & MAHINDRA
AGE: 63
89
VIKAS OBEROI
$1.8 BILLION
OBEROI REALTY AGE: 48
90
ARVIND PODDAR
$1.79 BILLION S
BALKRISHNA INDUSTRIES
AGE: 60
91
KRISHNA KUMAR BANGUR
Satyanarayan $1.7 BILLION Ì
Inder Jaisinghani: Nuwal: GRAPHITE INDIA AGE: 58
Wires made him rich. explosive
growth. 92
MURLI DHAR & BIMAL
GYANCHANDANI
$1.69 BILLION T
RSPL AGE: 70, 58
93
REDDY FAMILY
$1.61 BILLION
DR. REDDY’S LABORATORIES
94
DEVENDRA JAIN
$1.6 BILLION 3
GUJARAT FLUOROCHEMICALS
AGE: 89
95
TARANG JAIN
$1.59 BILLION Ì
VARROC ENGINEERING
through a network of more than 300 stores. In 1974, Dua, bust, as did several others. Nuwal began trading AGE: 56
a trained rubber technologist, joined the modest family explosives and went on to set up a factory in 1996
96
footwear and cycle parts business run by his father and in western India. He chose to call his company Solar SRIDHAR VEMBU
older brother. Two years later they launched the Relaxo Explosives, (which he later renamed Solar Industries) $1.56 BILLION Ì
brand, before adding brands such as Sparx, Bahamas and because, he says, “With a name like that, it was ZOHO AGE: 50
Flite. Bollywood actors Salman Khan and Akshay Kumar destined to shine.” It counts state-owned coal miners
serve as brand ambassadors. as well as infrastructure and construction companies 97
among its clients. In the year ended March 2018, the BHAVIN & DIVYANK TURAKHIA
SANDEEP ENGINEER: 57 company had $34 million in profit on revenue of $255 $1.55 BILLION 3
$1.04 billion million. His younger brother Kailashchandra is vice DIRECTI AGE: 38, 36
ASTRAL POLY TECHNIK chairman. 98
The chemical engineer started out working in pharma, then SHAMSHEER VAYALIL
launched a business making pharma ingredients in 1987. A INDER JAISINGHANI: 65 $1.54 BILLION
decade later he latched on to making plastic pipes, but sales $1 billion VPS HEALTHCARE
were slow until he decided to target plumbers, touting the POLYCAB WIRES AGE: 41
advantages of plastic pipes over metal. Sales got a huge Jaisinghani, who dropped out of school after his father’s 99
boost when actor Salman Khan became Astral’s brand sudden death, started a trading business in wires RAVI JHUNJHUNWALA
ambassador in 2014. Today the $292 million (revenue) and cables in 1968 at age 15. Today his $948 million $1.5 BILLION Ì
Astral also makes a range of adhesives and sealants. Astral (revenue) Polycab Group is one of India’s leading makers HEG AGE: 62
has 11 factories, including 3 in the U.S., the U.K. and Kenya. of electrical wires and cables used in a range of sectors
from oil refining to cement. In 2008 the International 100
SATYANARAYAN NUWAL: 66 Finance Corp., the private equity arm of the World Bank, BHADRESH SHAH
$1.48 BILLION 3
$1.01 billion picked up a minority stake in his privately held company. AIA ENGINEERING AGE: 66
SOLAR INDUSTRIES INDIA In recent years Polycab has expanded into making
Son of a government worker, Nuwal set up his first electric switches, lights and fans. Jaisinghani may list the
SUP MORE THAN 10% TDOWN MORE THAN 10%
business, to make inks, at age 18; that business went company this year.
ÌNEW TO LIST 3RETURNEE
GAUTAM: PANKAJ SHARMA/FOTOCORP; JAISINGHANI: THE HINDU IMAGES; NUWAL: THE TIMES OF INDIA GROUP
OCTOBER 2018 FORBES ASIA | 83
India’s 100 Richest
HINDUSTAN TIMES/SIPA USA/NEWSCOM
SALMAN KHAN: FAMOUS LAGGARDS
Bollywood fame, and even its fortunes, isn’t enough to lift some of India’s most recognizable faces to the Rich List. With latest-year earnings of $37.7 million, Khan
makes FORBES’ annual list of top 100 global celebrities, as does fellow actor Akshay Kumar, with $40.5 million, but even cumulative payouts over years of screen
gems aren’t getting them close to the billionaire class. Same goes for the country’s best-known sportsmen, including top cricketer Virat Kohli.
84 | FORBES ASIA OCTOBER 2018
BANSALS KEPT BELOW
FlipSmart But Still Short
arlier this year, Walmart paid a whopping
$16 billion in cash for a 77% stake in Flip-
Ekart, valuing India’s pioneering e-commerce
retailer at more than $20 billion. he blockbuster
deal, the biggest acquisition of an e-commerce
company ever, resulted in handsome gains for
Flipkart’s key investors, but where are cofounders
Binny Bansal and Sachin Bansal when it comes to
India’s richest?
he not-so-sad fact is that they emerged from
the windfall with not enough to make it back onto
the 100 list that they’d cracked in 2015 when Flip-
kart had zoomed to a notional value of $15 billion.
In the meantime, the cutof has risen by one third,
and their own stakes were diluted.
he former Amazon executives, who are not re-
lated and started the company in 2007 as an online
bookseller, parted ways on this deal. Sachin sold his
estimated 5% stake for around $1 billion and exited
the business completely while Binny has stayed on
as chairman and group chief executive, retaining
his similar-size stake. But a billion dollars only gets
you so far (up) in India these days.
In April 2017, ater Flipkart found itself in a
pitched battle with Amazon and its early promise
had faded, Tencent, Microsot and eBay collectively
invested $1.4 billion, valuing the e-commerce irm
at $11.4 billion. It got an additional $2.5 billion
from SotBank in August 2017 in the next phase of
the same fundraising round.
Walmart’s validation this year of a restored loty
valuation, Binny tells Forbes Asia, is the “greatest
endorsement of the ecosystem we’ve built.” Barely
100 million Indians are online shoppers (Flipkart
has 60 million active monthly users), but Binny
aims to double that—and Flipkart’s reach—in the Binny and Sachin Bansal (not related), creators of Flipkart.
next few years. (Sachin, meanwhile, is backing
startups and reportedly mulling an investment in Ola, an Indian A potential roadblock looms: he government is con-
Uber clone.) templating new rules to ban any discounts on goods sold by
Walmart’s acquisition is part of a trend of international retailers so-called marketplace irms such as Flipkart and Amazon.
investing in e-commerce irms across Asia-Paciic to get access to Ujjwal Chaudhry, who heads the consumer internet division
those growing markets, according to market research irm eMarket- at RedSeer Management Consulting in Bangalore, says the
er. Amazon has itself invested in or acquired at least six e-commerce move would shake the conidence of investors. In which case,
platforms in India, giving it a 30% share of the country’s e-commerce Binny Bansal’s return to the top 100 ranks is likely to take
market, which is expected to hit $33 billion this year, eMarketer says. longer. —M.B.
FOR METHODOLOGY AND ALL BIOS, GO TO FORBES.COM/INDIA.
THE TIMES OF INDIA GROUP
OCTOBER 2018 FORBES ASIA | 85
SPECIAL ADVERTISING SECTION
DIGITAL DISRUPTION,
SUSTAINABILITY AMONG
ISSUES FOR WCOA 2018
The World Congress of Accountants
( WCOA) retu rn s to Syd n ey in
November for the first time in 46
years as accounting and financial
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c h a n g e s t h a t m e a n m u l t i p l e
opportunities, but also pose fresh
challenges, for the global industry.
Along with tackling issues such as
new regulations and geopolitical pres-
sures, the finance and accountancy
sector is coming to terms with the
rapid pace of technological change.
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to make some roles redundant, new
technologies are helping industry priorities, will explore the relevance TXDOL²FDWLRQV DV ZHOO DV VWDQGDUGL]LQJ
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ing the time spent on tasks such as professionals, and how they can play a as Chartered Professional Accountants
manual book entry of invoices. At the key role in responding to global needs. of Canada having completed reciprocal
same time, cloud computing is mov- membership agreements with several
ing companies toward platform-based GEOPOLITICAL FACTORS international bodies.
business models that allow greater
connectivity. Amid these developments, there will Such relationships help to channel
be continued focus on more traditional domestic talent overseas as promising
Blockchain is another technology bread-and-butter issues. Differences opportunities arise from geopolitical
H[SHFWHG WR KDYH D VLJQL²FDQW LPSDFW and changes between different events such as China’s Belt and Road
on the community. Bitcoin is gaining tax jurisdictions are of increasing initiative.
mainstream traction and outside of significance as more companies
cryptocurrencies, potential broad use expand beyond their home country. Of With an estimated cost of more than
is likely in large enterprises where data particular interest is base erosion and US$1 trillion, the Belt and Road initia-
is shared across multiple divisions. profit shifting (BEPS), which relates tive comprises infrastructure projects
to corporate tax avoidance strategies across Europe, Asia and Africa and is
©$Q\ZKHUH WKHUH LV D ³RZ RI PRQH\ that exploit gaps and mismatches in expected to transform global trade,
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blockchain,” says Mark Staples, group low or no-tax locations. DFFRXQWLQJ DQG ²QDQFH SURIHVVLRQDOV
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18-0366
FORBES ASIA
HAIDILAO
Hot Pot
Hospitality
Zhang Yong’s Haidilao mushroomed into a Chinese sensation,
and suddenly he’s the world’s richest restaurant magnate.
BY PAMELA AMBLER
he ordered frenzy of a Haidilao hot pot tion, the second in the city, servers and kitchen staf from
restaurant is mirrored these days in the all corners rush out to greet Zhang da ge, their big brother
makings of founder Zhang Yong’s company. Zhang. His employees, now 60,000 and counting, give him
As the dining chain rollicked through a Hong one of the highest retention rates in the business, accord-
T Kong IPO in September that established ing to a Frost & Sullivan industry report that Haidilao
Zhang as the world’s richest eatery entrepreneur, it contin- commissioned. “Putting faith in my staf has paid of for
ued opening spots in Asia and beyond at the rate of one me. Giving them responsibility and autonomy is how you
every three days. show trust,” he says of his management philosophy.
Two decades ater Zhang irst greeted diners in his na- Haidilao only promotes from within (see box, p. 92).
tive Sichuan Province, home of pandas and the infamous he company empowers its store managers, or shifus, with
mala peppercorns, he controls not only Haidilao but also an equity-like incentive scheme, rewarding them with
the supplier of its spicy broths, condiment maker Yihai roughly 3% of the restaurants’ proits. When a shifu takes
International. Together those holdings, which he shares on a new location, he brings a third of his restaurant’s staf
with his wife and without accounting for a few smaller with him, leaving his apprentice behind as the new shifu
companies he has, gave him at age 47 a late September there. Alternatively, an apprentice can apply to run a new
valuation of $7.5 billion. location with the backing of his shifu, in which case, the
Whether in China, which still accounts for most of its shifu will get a cut of the proit from the new location.
370 sites, or in Seoul or Singapore or New York or L.A.—or Day to day, the whole team at each shop needs fuel on
soon in London’s Piccadilly—the selling point for Haidilao’s top of the Wi-Fi and laundry amenities provided them.
hot act remains the experience. By nearly all accounts, the hus the industrial-size vat in the back, fragrantly sim-
food, which is self-stewed at the table by customers who mering meals for the dozens of staf—the only centralized
select ingredients à la carte, is nothing you wouldn’t expect kitchen in the place. he soup broth for the paying diners’
from similar trendy joints, even with the hand-pulled noo- guo, or pot, comes prepackaged at 760 grams for loading
dles and popular sauce bar. But the swit, sure shepherding into the automated cookers. Fresh produce is weighed on
by staf, ater any wait has been molliied by complimentary site to ensure identical serving sizes.
manicures or smartphone detailing, is the dealmaker. Selie In all aspects of his business, Zhang is at once high-
prints are standard, baby cots are likely to be ofered table- touch and highly eicient. Haidilao’s origins were a four-
side—the roster of special services is up to each manager. table cafe that high-school dropout Zhang got around to
Hospitality is still in short supply at mass-scale eateries opening in the town of Jianyang, where he’d enjoyed little
on the mainland, and that’s where Haidilao has stood out. advantage growing up. “Any kindness I was shown let a
It’s the secret to satisfying 106 million guests last iscal year, great impression on me,” he relects, and he got that from
with revenues up 36% to $10.4 billion. And to keeping the grandparents, oten through food.
throngs coming all the time. Serving up meals became his own calling: “Because
As he walks through a newly opened Hong Kong loca- I didn’t have the technical knowledge or capital to do
90 | FORBES ASIA OCTOBER 2018
GRAHAM UDEN FOR FORBES
“Putting faith in my staf
has paid of”: Haidilao
founder Zhang Yong.
OCTOBER 2018 FORBES ASIA | 91
FORBES ASIA
HAIDILAO
anything else,” he says modestly. He oten spent the night in his would return,” using discounts and free snacks but also taking
irst restaurant on a metal foldaway bed. His most painful memory customer feedback seriously. He also kept his partners close. he
was breaking a $100 aquarium he had saved up for to display fresh founding foursome are today two married couples; the other hus-
seafood oferings. (Haidilao means deep-sea ishing, or literally band, Shi Yonghong, remains executive director of Haidilao with
“scooping the bottom of the ocean.”) a $3.5 billion stake. (Zhang’s spouse, Shu Ping, is one of several
hree friends helped with seed money, but he ran the place. “I nonexecutive directors.)
personally made sure that any guest who came through my door Behind the company’s people-irst approach is a set of stream-
lined procedures, beginning with the routine ater each guest
party is seated. A Harvard Business School case study back in 2011
UP FROM compared the cook-it-yourself food preparation to Ikea’s assemble-
ZHENGZHOU your-own-furniture model.
Zhang and his partners have set up separate companies to
handle warehousing and supply of food ingredients, as well as
Zhang Xiaojun, 32, is a clas- renovation work and security videos for Haidilao and other restau-
sic example of Haidilao’s rants. Another irm of theirs provides HR management.
ladder up. He started with Haidilao has rapid rollouts down to a science. New locations
Haidilao 15 years ago bus- break even within one to three months. How so reliably? he com-
sing tables in Zhengzhou, pany has developed an artiicial intelligence platform with Alibaba
capital of Henan Province, Cloud to improve site selection. An algorithm screens targets by
and has rotated through six population density, commercial opportunities, nearby eateries and
di erent markets, taking on nightlife venues such as karaoke bars. Many Haidilao locations are
larger restaurant roles. After open 24/7.
being bumped up to foreman Other considerations include the reputation of the real estate
in Tianjin, he became floor developer and accessibility to public transportation. Lee heatre
manager in Shenzhen. He Plaza, in the busy Causeway Bay area that attracts many mainland
now oversees both Hong tourists, emerged as the top choice for Hong Kong island. his is
Zhang Xiaojun: from farm life
Kong locations. to front of the house. the just-opened site—Hong Kong’s irst was in Kowloon’s Yau Ma
Like most of Haidilao’s Tai. (he eight restaurant closures that did happen in the last four
hires, Zhang came from a restaurant’s immediate vicinity years, Zhang says, stemmed from changes in local zoning and
and had few formal credentials. The company would be his commercial building codes.)
mark in life. he AI platform also igures out centralized inventory man-
Because Haidilao doesn’t rely on kitchen meals, there are agement. Deep-learning programs based on table-turnover rate
no seasoned chefs. Rather, spurs are earned in the front of patterns and consumption trends plot supply needs, while also
the restaurant. To identify high potential, the company o ers maintaining a safety watch for fresh ingredients such as lamb
a leadership program. Young Zhang stood out but still had sourced from Inner Mongolia and New Zealand.
to pass through ten posts as a mentee before his shifu— But can even the hot pot king get ahead of itself? he $963
manager level—could put him in a supervisor slot. Shifus million raised in the IPO is supposed to provide for doubling
bear the financial burden of the training if their mentees Haidilao’s global presence.
wash out. Some investors worry that the growth target will be diicult to
Expansions are a function of hiving o talent. A Haidilao achieve, given that Tier 1 cities are reaching the saturation point.
manager can open new restaurants but usually in the home he CEO, proudly sporting a gold company logo on his lapel, tells
province. Only apprentices who’ve achieved A-ratings twice Forbes Asia his intentions aren’t grand. “It’s better to scale fast and
a year are qualified to expand outside their region, as in be everywhere instead of having a single towering presence,” he
Zhang’s case. Mentors, meanwhile, are motivated to identify says. Haidilao isn’t interested in the premium sector. It wants to
talent as they share a higher percentage of profits from serve more afordable meals in lower-tier cities.
their apprentices’ restaurants than their own. Just a year ago, however, Zhang said on TV that he wouldn’t be
Zhang’s enthusiasm and can-do attitude has landed him listing his company because “restaurants are labor-intensive, not
far from home as operations director in the Tier 1 city of capital-intensive.” And that taking Haidilao public would not help
Hong Kong. “If I didn’t make the decision to join Haidilao the restaurant expand in the U.S. and U.K. So why risk the ickle
when I was 17, I would probably still be farming in my home equity exchange? “Companies will certainly tap capital markets
town today,” he reflects. when they reach certain scale” is the onetime factory welder’s
Now a married father of three, Zhang draws the picture buttoned-down response. “I didn’t do this before because I was
even wider: “Joining Haidilao after junior high changed the searching for a way for Haidilao to scale irst, and I have already THEODORE KAYE FOR FORBES
fate of three generations for the better: myself, my parents, found it. Haidilao won’t change the rhythm it does things ater it
and my children.” —P.A. goes public. We will keep doing what we did before.” F
92 | FORBES ASIA OCTOBER 2018
Live from Singapore, Asia Business Report brings you the latest
regional business news and analysis at the start of your day.
RICO HIZON SHARANJIT LEYL
Presenter Presenter
WEEKDAY MORNINGS AT 0630, 0730, 0830 & 0930 hrs (HKT)
Forbes Life
Where to
Hang in Penang
A tale of ambitious Armenian brothers and their elegant legacy.
BY JANE A. PETERSON
enang, an island oasis in the northwest corner of Malaysia expand abroad, Arshak, the youngest, was let to run the E&O in
where travellers head for culture and cuisine, is oten called 1898. Under his command, the E&O expanded into a glittering so-
“he Pearl of the Orient.” On the banks of the Andaman cial scene, boasting an orchestra and 130 suites. Having the longest
PSea, the pearl of Penang is the Eastern & Oriental Hotel, hotel seafront in the world, it became a magnet for Noel Coward,
established in the 1800s by the Sarkies brothers, Armenian hoteliers Rudyard Kipling, Sun Yat-sen, Somerset Maugham and Hermann
who also founded two famous sister hotels—Ra es in Singapore Hesse, who in 1911 called the E&O the “most beautiful hotel for
and the Strand in Rangoon. Europeans in the East Indies.”
he Sarkies brothers grew up in Persia, were educated at an he party ended in 1931. At age 63, Arshak, the last surviving
Armenian college in Calcutta and then made their way to Penang. brother, died just before Sarkies’ irm was declared insolvent, his lav-
In 1884, 23-year-old Tigran opened the Eastern Hotel, and soon ish spending on the business coinciding with the Great Depression.
ater was joined by Martin and Aviet, who established the Oriental, Two years later, the E&O was subsumed under the Ra es Hotel
which they combined into the E&O in 1889. As they let Penang to company, the irst of several subsequent owners of this iconic hotel. F
The Sarkieses expanded the E&O in several phases: The Victory
Annex, built in 1923, honored the British contribution in World War I.
It featured a 300-seat dining area and a ballroom. Eighteen years
later Japanese forces occupied Penang, and their senior oicers
lodged in the E&O until 1945. Today the hotel is owned by a listed
property consortium, Eastern & Oriental Bhd., which bought the hotel
in 1994 and completed a major restoration in 2001.
JANE A. PETERSON (BOTTOM RIGHT)
Martin Sarkies, seated, with brother Arshak to his right, circa 1906. On the left, hotel
manager Joe Constantine; on the right, Ra es managing proprietor Martyrose Arathoon,
who would become a partner of Sarkies Brothers in 1917. When this photo was taken the
E&O was thriving, as was Penang’s rubber industry. Arathoon, as the firm’s sole remaining
partner, received the bankruptcy order in 1931, putting Sarkies Brothers into receivership.
94 | FORBES ASIA OCTOBER 2018
WHEN IN MALAYSIA . . .
Merlene Narcis, the in-house historian, gives tours of the hotel’s museum, which its traces its history and displays notable artifacts. Guests can opt to stay in the
Heritage Wing, established in 1885 with 100 suites, or in the newer, and slightly less expensive, Victory Annex with 128 suites. Among the restaurant options is Sarkies
Corner, a casual cofee shop; or Sarkies, the main dining room featuring local and international dishes; and 1885 if you are in the mood for formal afternoon tea or
dinner in the “finest traditions of colonial-style dining.”
Begun as a rice stall in 1965, the no-frills Teksen
Restaurant on Carnavon Street ofers a mix of cuisines:
Visit two beautifully restored mansions. The mint green Pinang Peranakan Mansion, now a museum, was Cantonese, Teochew, Hakka and Perankan. Expect to get
once the home and oice of merchant Chung Keng Quee in the 1800s, while the Blue Mansion belonged a playing card that marks your place in the fast-moving
to Chinese tycoon Cheong Fatt Tze, known as China’s last mandarin, first capitalist and “Rockefeller of the queue. Don’t fret—it’s worth the wait. Signature dish:
East.” Now a boutique hotel, the Blue Mansion ofers daytime public tours. Assam Tumis fish and trotters in black vinegar.
JANE A. PETERSON
OCTOBER 2018 FORBES ASIA | 95
THOUGHTS ON
India
“No people whose
word for ‘yesterday’
“I JUST WANTED
is the same as their TO GO HOME, TO
word for ‘tomorrow’ “Vedas are the THE LANGUAGE
can be said most rewarding IN WHICH I WAS
KNOWN, AND
to have a and the most LOVED.”
irm grip on elevating book
which can be —JHUMPA LAHIRI
the time.” possible in the
—SALMAN world.” “India is a curious
RUSHDIE place that still
— SCHOPENHAUER
preserves the past
religions and its
“If America is history. No matter
a melting-pot, how modern India
then to me becomes, it is still very
India is a thali, much an old country.”
a selection of —ANITA DESAI
sumptuous
“If there is one dishes in “Indians are the
place on the face di erent Italians of Asia and
of earth where bowls.” vice versa. Every man
all the dreams —SHASHI in both countries is
THAROOR a singer when he is
of living men
happy, and every
have found a woman is a dancer
home from the “To steel yourself when she walks to the
against mangoes showed
very earliest shop at the corner.”
a degree of iciness that
days when man began the dream of was almost inhuman.” —GREGORY DAVID
existence, it is India!” —ROMAIN ROLLAND —VIKRAM SETH ROBERTS
“We may not have
sewage, drinking SAUMYA KHANDELWAL/HINDUSTAN TIMES VIA GETTY IMAGES; ULF ANDERSEN/GETTY IMAGES; ELISABETTA VILLA/GETTY IMAGES; KRISTOPHER SKINNER/ZUMA PRESS/NEWSCOM; AWAKENING/GETTY IMAGES
water, and Olympic
gold medals,
but we do have KEVIN HARVEY/AP PHOTO; THE PRINT COLLECTOR HERITAGE IMAGES/NEWSCOM; GERARDO GAZIA/SINTESI/SIPA/NEWSCOM; PAUL ALMASY/AKG-IMAGES/NEWSCOM;
democracy.”
—ARAVIND ADIGA
“NOTHING SOOTHES AN UPSET FINAL
PUNJABI LIKE DAIRY PRODUCTS.”
THOUGHT
—CHETAN BHAGAT
India is and—let us
“INDIAN FOOD IS LIKE CLASSICAL MUSIC RAGA— hope—remains a
IT TAKES TIME TO BUILD UP TO A CRESCENDO.” miracle.
“NOTHING MAKES YOU
—SHOBHAA DE —MALCOLM FORBES
FEEL MORE BEAUTIFUL
THAN A SARI.” —MITALI PERKINS SOURCES: MIDNIGHT’S CHILDREN; SHANTARAM; 2 STATES: THE STORY OF MY MARRIAGE; BOOKLESS IN BAGHDAD:
REFLECTIONS ON WRITING AND WRITERS; SUPERSTAR INDIA: FROM INCREDIBLE TO UNSTOPPABLE; IN OTHER WORDS; A
SUITABLE BOY; YOU BRING THE DISTANT NEAR; THE WHITE TIGER; GOODREADS.COM.
96 | FORBES ASIA OCTOBER 2018
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