Anil Dhirubhai Ambani Group (ADAG) Chairman Anil Ambani continues to be on the focus of US magazine Forbes but this time it is for topping the list of wealth losers in 2008. Anil has topped the Forbes ‘Billionaire Blowups of 2008’ survey in less than a year of being touted as the biggest gainer in the world by the same magazine.
Besides ranking him as the sixth richest person in the world with a net worth of $42 billion, Forbes had credited him for having added maximum wealth in its last annual rankings in March. Since then, his net worth has declined to $12 billion, the magazine said in a news report titled ‘Billionaire Blowups of 2008’.
“The biggest loser of all was Anil Ambani. Touted on the cover of our 2008 billionaires issue for having added $24 billion to his fortune in one year, Ambani has dropped $30 billion since then,” the report said.
The report further added that three of “his fellow countrymen — estranged brother Mukesh, steel tycoon Lakshmi Mittal and DLF Group Chairman KP Singh, all of whom ranked earlier among the world’s 10 richest — lost more than $20 billion apiece.” Noting that 2008 was “a dreadful year for the world’s wealthiest as markets and currencies around the world tumbled,” Forbes said that over 300 of the 1,125 billionaires have lost at least $1 billion since March.
While several dozen have lost more than $5 billion, the 10 richest from annual 2008 rankings have lost about $150 billion. This is primarily driven by steel tycoon Lakshmi Mittal, estranged brothers Mukesh and Anil Ambani and property baron KP Singh together losing $100 billion.
The publication has also listed out its top “10 Billionaire Blowups,” noting that “even in such an awful year, the stories of a few billionaires and now former billionaires stand out as particularly dreadful”.
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“The biggest billionaire gainer till last March is now the year’s biggest loser. Ambani lost $30 billion in the past nine months, more than anyone in the world. Stocks of his telecom company dropped after his estranged brother helped scuttle a deal with African telecom MTN,” the report noted.
Forbes, however, noted that with $12 billion worth of fortune, Anil Ambani “remains quite wealthy... That is something many others can’t claim”. The list of 10 billionaire blowups includes two more Indians — wind power major Suzlon’s chief Tulsi Tanti and online gambling firm PartyGaming’s founder Anurag Dikshit.
“Dozens of the world’s wealthiest lost billions in the recent months, yet these 10 distinguish themselves for some of the biggest flops. But they lost more than money. Some lost board seats. Several faced margin calls. A couple got in trouble with the law. All suffered hits to their reputations.”
Tulsi Tanti’s wealth dropped by $2.5 billion to stand at $500 million, while Dikshit’s current net worth is about $1 billion, down from $1.6 billion in March 2008.
Others among these 10 include Russian billionaire Oleg Deripaska, Iceland’s Bjorgflur Gudmundsson, Spain’s real estate player Luis Portillo, China’s Wong Kwong Yu and Larry Yung and Ukraine's Konstantin Zhevago.
On Tanti, it said that the wind was knocked out of Tanti and his wind firm, Suzlon Energy, amid reports about the poor quality of its wind turbine blades, some of which cracked.
“The company’s $25 million provision to fix faulty blades didn’t do much to boost investor confidence. The stock has plunged 80 per cent since March,” it added.
Dikshit, the designer of the software for PartyPoker game recently pleaded guilty for violating American web gaming laws and also agreed to forfeit $300 million. “He could face up to two years in jail but apparently won’t be sentenced until 2010. He has already paid $100 million of his fine and will pay the rest in two instalments next year,” the magazine said.