Mukesh pips Mittal to become richest Indian

Reliance Industries (RIL) Chairman Mukesh Ambani has overtaken steel tycoon Lakshmi Mittal to become the richest Indian, following the unprecedented boom in the Indian stock market.

Ambani's net worth has soared past $50 billion, which makes him the first Indian and only the fourth person in the world with more than this amount.

The RIL chief is believed to be now next only to software czar Bill Gates of the US, Mexican business baron Carlos Slim Helu and Warren Buffett, regarded the world's greatest investor.

Based on today's closing share prices of various group companies such as RIL, Reliance Petro, IPCL and Reliance Industrial Infrastructure, Mukesh Ambani is estimated to hold shares worth $50.1 billion (about Rs 2,00,000 crore) through promoter holdings in these companies.

The four companies put together have a market value of Rs 4,09,325 crore ($103 billion).

On the other hand, Mittal owns shares worth about $48.4 billion in ArcelorMittal, the world's biggest steelmaker in terms of revenue, assets and market value.

Shares of ArcelorMittal, in which Mittal family holds 44.79 per cent, were trading at about 55 euros ($77) in the European market today, giving it a market cap of about $108 billion.

While the net worth of Mukesh Ambani and L N Mittal are based on the current market values of their group companies, that of Gates, Buffett and Carlos Slim are based on August-end figures.

World's richest
According to Forbes US business magazine, which publishes the list of richest Americans and the wealthiest in the world every year, Bill Gates is the richest American with a net worth of $59 billion. Warren Buffett with $52 billion is second in the list that was published earlier this month. Forbes put Carlos Slim's net worth at $59 billion.

Forbes had placed L N Mittal in fifth position with a net worth of $32 billion in its world's richest list published in March. Mukesh Ambani was ranked 14th with $20.1 billion.

Since then, Mittal's wealth has grown 53 per cent, while that of Ambani has galloped by 160 per cent.

The comparison does not end with personal wealth.

While ArcelorMittal has become the world's first steel maker to attain a market cap of over $100 billion, Ambani has become the first person in India to head a group that has a market value of more than $100 billion.

However, Mukesh Ambani heads a group of four major companies, while Mittal owns one. India still does not have a company with a market cap of $100 billion.

In a report released in August, the global investment bank Morgan Stanley had predicted that RIL could be the first Indian company to reach the mark.

While forecasting a share price surge of about 37 per cent over the next year, Morgan Stanley said this would take RIL's market cap to more than $100 billion dollars by August 2008.

At the time, RIL's market cap was about $64 billion. It has grown to about $81 billion now. This, despite the company's shares dipping 3.24 per cent today.

Band of brothers
While Mukesh Ambani has surpassed L N Mittal in the top league of wealth creators acro ss the world, younger brother Anil Ambani, who parted ways in June 2005, has also had a sharp surge in net worth.

Anil Ambani's net worth, calculated on his shareholdings in various group companies, including Reliance Communications, Reliance Capital, Reliance Natural Resources and Reliance Energy, has grown to about $29 billion.

The two Ambani brothers together have a net worth of about $80 billion, estimated to be more than anyone else in the world.