Mukesh Ambani loses Asia wealth crown to Jack Ma in $5.8 billion rout

News Network
March 10, 2020

Mar 10: Indian energy tycoon Mukesh Ambani is no longer Asia’s richest man, relinquishing the title to Jack Ma after oil prices collapsed along with global stocks.

The rout, exacerbated by mounting fears that the spread of the novel coronavirus will thrust the world into a recession, erased $5.8 billion from Ambani’s net worth on Monday and pushed him to No. 2 on the list of Asia’s richest people, according to the Bloomberg Billionaires Index. Ma, the Alibaba Group Holding Ltd. founder who relinquished the No. 1 ranking in mid-2018, is back on top with a $44.5 billion fortune, about $2.6 billion more than Ambani.

Oil plunged the most in 29 years on Monday as Saudi Arabia and Russia vowed to pump more in a struggle for market share. The slump comes just as the coronavirus is spurring the first decline in demand in more than a decade. That raises questions about whether Ambani’s flagship Reliance Industries Ltd. will be able to cut net debt to zero by early 2021, as he has pledged. The plan hinges on a proposal to sell a stake in the group’s oil and petrochemicals division to Saudi Arabian Oil Co., the world’s biggest crude producer.

While the coronavirus has curtailed some of tech giant Alibaba’s businesses, the damage has been mitigated by increased demand for its cloud computing services and mobile apps.

Reliance Industries, by comparison, has no such silver lining. The Indian conglomerate’s shares plunged 12% on Monday, the most since 2009, extending this year’s decline to 26%. Alibaba’s American depositary receipts have slipped 6.8% so far in 2020.

Ma reclaims crown after Reliance shares were pummeled in 2020.

Few of the world’s billionaires fared well in Monday’s collapse as the S&P 500 Index and Dow Jones Industrial Average each plunged more than 7.5%, the most since the 2008 financial crisis, threatening to end the longest bull market in history. But no one did worse than those whose fortunes are underpinned by oil. Wildcatter Harold Hamm’s fortune was cut almost in half to $2.4 billion and fellow oil magnate Jeff Hildebrand lost $3 billion, bumping both from Bloomberg’s 500-member wealth ranking.

In a pivot toward new businesses such as telecommunications, technology and retail, Ambani’s Reliance Industries has piled on billions of dollars of debt over the years.

It spent almost $50 billion -- most of it funded by borrowings -- to build Reliance Jio Infocomm Ltd., which became India’s No. 1 wireless carrier within about three years of its debut. As the mobile venture took off, Ambani also unveiled plans for an e-commerce empire to rival Amazon.com Inc. in India.

Addressing concerns over the liabilities, Ambani pledged in August to cut the group’s net debt to zero from about $21 billion as of last March. The Aramco deal is crucial to that plan for which Reliance Industries has valued its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the 20% stake that’s for sale.

Signs of a potential delay to that deal unnerved some investors, hammering the stock since it touched a record high on Dec. 19.

Reliance Industries expected the Aramco transaction to be completed by March, but people familiar with the matter said in February that talks were still ongoing to bridge differences between the two parties over the deal’s structure.

Adding to the uncertainty, Indian Prime Minister Narendra Modi’s administration has petitioned a court to halt the proposed stake sale, threatening a key source of funds needed to pare net debt.

But Ambani, 62, may soon bounce back from the setback, said Harish H.V., managing partner at ECube Investment Advisors in Bengaluru, India.

“The game isn’t over,” he said. “Ambani has successfully built a robust business model which would keep him in the game. Moreover, his telecom business will start yielding results in coming years.”

Comments

SmR
 - 
Tuesday, 10 Mar 2020

The curses of the bank depositors savings which vanished with collapsing economy and fraudlent seems to have gradully affecting riches of Ambani's.

 

AU
 - 
Tuesday, 10 Mar 2020

in Holy Quran Allah says; but they plan and Allah plans, and Allah is the best planners..(Surah Al Anfal 8:30)

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News Network
February 6,2020

New Delhi, Feb 6: DMK Lok Sabha member M K Kanimozhi on Wednesday challenged popular actor Rajinikanth to raise his voice for Muslims, saying they have "already been affected" by the Citizenship (Amendment) Act and are protesting on streets against the law.

Reacting to his statements earlier in the day in Chennai that "CAA is no threat to Muslims" and "if they face trouble I will be the first person to raise voice for them," Kanimozhi, daughter of former Tamil Nadu Chief Minister M Karunanidhi, told news agency that "Muslims in India have already been affected due to CAA".

"Let him (Rajinikanth) come forward and raise his voice for the affected Muslims", she said.

She said the members of the community have been protesting as the law leaves out Muslims.,

Asked whether Rajinikanth, through this pro-CAA statement, was moving closer to the BJP, the MP from Tuticorin said, "What he has said is no different from the BJP's narrative which we have been listening in parliament for the last few days".

Under CAA, members of Hindu, Sikh, Buddhist, Jain, Parsi and Christian communities who came to India from Pakistan, Bangladesh and Afghanistan till December 31, 2014, to escape religious persecution there will not be treated as illegal immigrants, and be given Indian citizenship.

Rajinikanth had asserted that the legislation did not pose any threat to Muslims. He wondered as to how Muslims, who chose to stay back in India following Partition will be sent out of the country. Besides, the central government had assured that Indian people will have no issues in view of CAA, he noted.

He charged that some political parties were instigating people against the CAA for their selfish interests.

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Agencies
July 15,2020

New Delhi, Jul 15: Air India has started the process of identifying employees, based on various factors like efficiency, health and redundancy, who will be sent on compulsory leave without pay (LWP) for up to five years, according to an official order.

The airline's board of directors have authorised its Chairman and Managing Director Rajiv Bansal to send employees on LWP "for six months or for a period of two years extendable upto five years, depending upon the following factors - suitability, efficiency, competence, quality of performance, health of the employee, instance of non-availability of the employee for duty in the past as a result of ill health or otherwise and redundancy", the order said on Tuesday.

The departmental heads in the headquarter as well as regional directors are required to assess each employee "on the above mentioned factors and identify the cases where option of compulsory LWP can be exercised", stated the order dated July 14.

"Names of such employees need to be forwarded to the General Manager (Personnel) in headquarter for obtaining necessary approval of CMD," the order added.

In response to queries regarding this matter, Air India spokesperson said,"We would not like to make any comment on the issue."

Aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries due to the coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, LWP and firings of employees in order to conserve cash flow.

For example, GoAir has put most of its employees on compulsory LWP since April.

India resumed domestic passenger flights from May 25 after a gap of two months due to the coronavirus pandemic.

However, the airlines have been allowed to operate only a maximum of 45 per cent of their pre-COVID domestic flights. Occupancy rate in Indian domestic flights has been around 50-60 per cent since May 25.

Scheduled international passenger flights continue to remain suspended in India since March 23.

The passenger demand for air travel will contract by 49 per cent in 2020 for Indian carriers in comparison to 2019 due to COVID-19 crisis, said global airlines body IATA on Monday.

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News Network
June 7,2020

Bhopal, June 7: In a shocking incident of medical cruelty, an 80-year-old man was tied to a hospital bed in Madhya Pradesh after he allegedly failed to make payment of fees for his treatment. The incident took place at the City Hospital in Shajapur.  

The hospital, however, claimed that he was having convulsions and as a result had his hands and legs tied so that he could not hurt himself.

The man’s family members have accused the hospital authorities of resorting to the heinous act after they failed to pay a fee of Rs 11,000 for his treatment at the. 

“We had deposited a bill of Rs 5,000 at the time of admission but when the treatment took a few more days, we did not have the money to pay the bill,” his daughter told the channel.

The hospital, however, maintained that the man was shackled because he was suffering from an electrolyte imbalance. “He was having convulsions because of electrolyte imbalance,” an unidentified doctor said. “We tied him so that he could not hurt himself.” 
The doctor claimed the hospital had waived off the man’s bill on “humanitarian grounds”.

Chief Minister Shivraj Singh Chouhan took cognizance of the matter and promised strict action against the hospital authorities. 

The Shajapur administration has also ordered an inquiry and has sent a police team to the hospital for investigation, the district collector told media persons.

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