Winds of Change

From a sectoral perspective, it's not surprising to see business families running diversified businesses generate ₹26.45 lakh crore ($322 billion) in collective wealth, though lower than last year thanks to the market meltdown of the Adani Group. Pharmaceuticals is the second-biggest sector where 22 billionaires have churned out ₹10.28 lakh crore ($125.13 billion). Fast-moving consumer goods (FMCG) is the third-biggest sector where 13 billionaires hold a cumulative ₹5.20 lakh crore ($63.30 billion). Given the sticky inflation and rate hike spree, the U.S. market is facing a challenge in terms of growth and that has taken the wind off the IT services sector. But for now, the sector continues to boast of eight billionaires worth ₹4.57 lakh crore, with Shiv Nadar and Azim Premji accounting for ₹3.53 lakh crore, or 77% of the sectoral net worth. Once seen as a recession- proof industry, the reversal of the four decade long low-rate environment in the U.S is now proving to be a spoiler in the India IT story. The pandemic-fuelled digital boom saw the cumulative market cap of 56-stock BSE IT Index more than double from ₹16 lakh crore in 2020 to a high of ₹39 lakh crore in 2022. But since then, concerns around the fallout of the Fed rate hike on IT spending of companies has pulled down the mcap by 20% to ₹31 lakh crore.

"Whether there would be an encore from this sector is anyone's guess. But I wouldn't be surprised if this sector continues to dominate as they are best positioned to take advantage of any incremental economic value from artificial intelligence and machine learning," says Shenoy of o3 Wealth, which also manages the wealth of a couple of Infosys co-founders.

Interestingly, of the two professionals-turned-entrepreneurs, Falguni Nayar (Nykaa) and Abhay Soi (Max Healthcare Institute), the latter has increased his wealth by more than 56% to ₹13,869 crore, while Nayar's wealth saw a 38% decrease. Soi turned a promoter along with private equity major KKR in the formerly Analjit Singh-owned entity, following the demerger of Radiant Life & Max Healthcare and Max India assets. The 3,500-bed hospital chain is now looking to ramp up the business, which clocked revenues of ₹5,092 crore in FY23. "There are 21 cities that we have identified. These are cities where at least one or two of our peers have proven viability. So, we think we can go there and do it better," Soi tells analysts post Q1FY24.

In fact, the 49-year-old Soi happens to be the youngest entrepreneur from Mumbai to make it to the list. Unsurprisingly, dollar billionaires are largely concentrated in two cities. Mumbai and Delhi together account for ₹41.56 lakh crore (60%) of the Fortune India-Waterfield Advisors listing, followed by Bengaluru, Chennai and Ahmedabad. Interestingly, there are 18 smaller towns and cities that have a dollar billionaire each.

Within the start-up universe concentrated in Bengaluru, barring Byju Raveendran, whose wealth has seen a drastic 73% fall to ₹10,980 crore following the controversy around his edtech empire, the Kamath brothers of Zerodha and Bhavish Aggarwal of Ola are sitting pretty. In fact, even as the cab-sharing business is losing steam, Aggarwal is riding the EV wave with Ola Electric emerging as the country's largest electric two-wheeler maker.

While the funding winter and subsequent valuation meltdown could upend the start-up saga, going by recent trends in India Inc., it appears that diversified conglomerates — more specifically, the Tatas, Reliance Industries and Adani — are setting their sights on increasing their influence through a series of mergers, acquisitions, and spin-offs, all underpinned by a strong digital strategy. "Post deleveraging and institutionalising cost efficiency, the bigger have become much stronger. Hence, the theme will play out across sectors," says Rajan of Waterfield Advisors.

With an average age of 60-plus, the Fortune India-Waterfield wealth ranking might seem like a senior yearbook, reinforcing the idea that wealth often keeps better company with experience. But in a nation brimming with youthful exuberance, a demographic plot twist is in the offing. As next-gen heirs take on the reins of their legacy empires and start-up founders face baptism by fire on the Street, the unfolding years could well rewrite the names that adorn the list.

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