Forbes India 05 April 2013 (e-magazine full)

forbes india Volume 5 issue 7 april 5, 2013 The World’s R iches t P eople 2013

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With $5.4 trillion between them, their wealth is now at an all-time high

ple

The World’s Richest

Business.

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Tablet Edition

Welcome to the

In Association With

On Doers and Doings

April 5, 2013 | forbes india 5

The special edition that you hold in

your hands is the definitive guide

to the richest people on earth.

For a little less than three decades, Forbes

has been at the forefront of tracking the

wealth of the biggest billionaires around

the world. The global wealth team, led by

editors Luisa Kroll and Kerry A Dolan,

have ranked the billionaires on the basis of

their net worth. And this year too, despite

the global uncertainties, the 2013 Forbes

Billionaires list has as many as 1,426 names.

True to form, the US has the highest

share of billionaires (442, to be precise),

but the rise of Asia is clearly noticeable. In

all, there are 386 billionaires in the region,

up from 315 last year, which translates

into a 20 percent jump in net worth. And

China is well ahead in that race, with 122

billionaires; India takes second place at

55. This time, the number of newcomers

(78) in Asia is significantly higher than the

number of dropouts (22), suggesting that

the momentum could last for a while.

There are plenty of riveting stories in this

edition that are bound to keep you hooked.

Like the one on Russian tycoon Mikhail

Prokhorov, who is a strong candidate to

eventually replace Vladimir Putin in the

Kremlin. Don’t miss the incredible story

of Prince Alwaleed Bin Talal of Saudi

Arabia. He’s apparently willing to go to

any lengths to push up his ranking on the

Forbes list, except that his methods are now

no longer a secret. In 2010, I remember

meeting Renzo Rosso in Mumbai,

when he was here to launch his brand

Diesel, in alliance with Reliance Brands.

Today, Rosso is building a global fashion

conglomerate that could rival LVMH.

When this magazine was launched

in the US in 1917, its original name was

Forbes: Devoted to Doers and Doings. The

billionaire entrepreneurs, who feature in

these pages, are a testimony to that very

same spirit. As Nolan Bushnell, the founder

of Atari, once said about entrepreneurship,

“The critical ingredient is getting off

your butt and doing something. It’s

as simple as that. A lot of people have

ideas, but there are few who decide to do

something about them now. Not tomorrow.

Not next week. But today. The true

entrepreneur is a doer, not a dreamer.”

Best,

Indrajit Gupta

Editor, Forbes India

[email protected]

@indrajitgupta

/ letter from the editor /

The rise of

Asia is clearly

noticeable. In

all, there are 386

billionaires in the

region, up from

315 last year,

which translates

into a 20 percent

jump in net worth

I ND IA

Volume 5 | Issue 7 | April 5, 2013

6 forbes india | April 5, 2013

features

upfront

12 Global Giving

Since its debut three years ago, 105

billionaires have signed Warren

Buffett and Bill Gates’ Giving

Pledge, promising to give away at

least half their wealth. Here are 11

non-US billionaire signatories. Plus:

Amancio Ortega leads our annual

scorecard of biggest gainers

13 Most Eligible

Nearly all of the world’s 1,426

billionaires are married, but

these five have never tied the

knot. Plus: Up-And-Comers, the

Billionaires edition

14 Virgin Territory

These entrepreneurs put their

countries on the billionaire map

for the first time

15 The Fallen

Only 68 billionaires failed to make

it to the list this year, and eight of

those died. That pales in comparison

with the 210 newcomers. Here are

10 notable drop-offs

16 Self-Made Women

We take a quick look at 10 of the 24

women on our list who started their

own businesses

18 Trends: What the Billionaires

List Tells Us

An analysis of our list shows which

emerging economies are on the rise

and which will disappoint

20 Indian Billionaires

There are 55 of them on the list, with

a total net worth of $194 billion

Contents

24 The Rise of Saigon

Nearly four decades after the

communists declared victory,

it turns out capitalism won the

Vietnam War. The proof: Pham

Nhat Vuong, the country’s first

billionaire

30 Billion in a Bottle

PepsiCo bottler Ravi Jaipuria’s

insatiable thirst for growth earned

him a fortune

34 Prince of Insecurity

Prince Alwaleed says he’s one of

the 10 richest people in the world.

Forbes doesn’t buy it

42 From Oligarch to President?

Mikhail Prokhorov is a tycoon

in Russia, Jay-Z’s partner in

Brooklyn—and a strong candidate

to eventually replace Vladimir

Putin in the Kremlin, a prospect

the billionaire is turning into his

fulltime job

48 Diesel Powered

Renzo Rosso made his first billions

by bringing a sexy Italian touch

to the ultimate American icon,

blue jeans. Now he’s building an

international fashion conglomerate

that could one day rival LVMH

54 The Thrillionaire

GoPro’s Nick Woodman lived to

surf and take photos doing it. A

reminder of the most powerful

Most Eligible:

Jack Dorsey

Woman On top:

Rosalia Mera

13 16

April 5, 2013 | forbes india 7

model in business: Doing what

you love

61 The World’s Billionaires

The ranks of the world’s

billionaires, as monitored

and tallied by our global wealth

team, have yet again reached

alltime highs

62 The Top 20

Carlos Slim is once again the

world’s richest person, followed

by Bill Gates

Vietnam’s first

billionaire: Pham

Nhat Vuong

GoPro’s Nick

Woodman

Diesel’s Renzo

Rosso

Saudi Prince

Alwaleed

Russian tycoon

Mikhail Prokhorov

PepsiCo bottler

Ravi Jaipuria

24 30

34

42

48

54

8 forbes india | April 5, 2013

I ND IA

Volume 5 | Issue 7 | April 5, 2013

Contents

124 Billionaire Beach

California’s Carbon Beach is the

world’s most expensive sandbox.

Hollywood’s power players now

pay upwards of $200,000 per foot

of beachfront

11 Letters to the Editor

127 Thoughts

regulars We value your feedback.

Write to us at:

[email protected]

Letters may be edited for brevity.

Read us online at www.forbesindia.com

Cover Design by Anjan Das

Life

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126 A Day in the Life

Twenty-four hours of

billionaire brands

124

66 The Full List

The 2013 Forbes Billionaires

list now boasts 1,426 names,

with an aggregate net worth

of $5.4 trillion, up from

$4.6 trillion

features

Carbon Beach

Magazine  Upfront  Features  Life  Daily Sabbatical  Multimedia  Blogs  News Lists 

www.forbesindia.com

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Mumbai Vs Bangalore

Mumbai and Bangalore’s roles in

a new global economy

Are Small and Medium

Businesses Really Demanding

Cheaper Software?

The opportunity exists in growing

markets across the world, and

several software vendors are

shifting focus on maximising their

revenues from countries like Brazil,

India, Russia and China; most of

the individual businesses in these

countries are small to medium in

terms of revenues

Our Bloggers

Forbes

billionaires

list 2013

The Soul of the

New Corporation

By Mitu Jayashankar

& Cuckoo Paul

Daily Sabbatical

Podcasts

DR. Rajat

Chauhan

An ultrarunner, and founder & medical

director at Back 2 Fitness

Chevrolet has the technology,

portfolio of products which includes

a small car, quite a few sedans, a

utility vehicle and a network

that covers almost 170

cities in the country. But

it continues to remain a

fringe player in India

The Fizzy Health Care Industry

Research shows that 20 percent

taxes on fizzy drinks would add up

to over a billion pounds a year. It is

being recommended that the money

be used in treating obesity

Stereotyping: That Blinding

Human Folly

Some of us are blinded by our

own personal stray experiences,

comforting or otherwise,

which makes us arrive at our

own stereotypes. The generic

stereotypes, at least, are public

and can be challenged

ANIRUDHA

DUTTA

Blogs on stories beyond

the numbers

Ashish K

Mishra

An autophile with a handle on

the Indian auto industry

Nilofer

D’Souza

Writes on health, entrepreneurship

and technology

Young India: Developing,

Engaging and Retaining

Gen Y Talent

How the transition will need to be

managed by the country as well as

organisations in order to maximise

the opportunities and benefits of

this enviable demographic in India

Chevrolet India—The Average Car Company

The Future of

Working Life

Lynda Gratton, a

London Business

School professor and

a top management

thinker, describes

the possible ups and

downs of our future

work life

China’s Grossly

Underestimated

Consumption

China’s consumption

rate is generally

comparable to the

level of consumption

in the East Asian tiger

economies based on

figures from PWT

Is ‘Conscious

Capitalism’

an Antidote

to Income

Inequality?

If capitalism creates

unacceptable income

inequality, what can

be done about it?

April 5, 2013 | forbes india 9

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10 forbes india | April 5, 2013

readers say

FLY HIGH BUT CHEAP

Refer to ‘Change is in the

Air’ (March 22, 2013, issue).

I’m sure there would

definitely be more articles

linked to Air Asia, low￾cost carriers (LCC) and

India. Discipline is much

required in aviation and

it has a direct bearing on

cost. IndiGo was able to

attract business customers

primarily by being on

time. AirAsia has mostly

self check-in kiosks and

they work pretty well if a

passenger is on time. Most

of us do not need three

people to issue a boarding

pass. Culturally, AirAsia fits

well with the average India

that wants to travel cheap,

often, and not too far.

Vaibhav Mathur

On the Web

AirAsia is all set to disrupt

business models and the

[aviation] sector in India.

Perhaps it’s a dream come

true for the original

Indian LCC proponent:

Captain Gopinath. Perhaps

it’s a travesty of sorts for

Kingfisher [Airlines] to

look haplessly at such a

phenomenon. But

employees of KF will be

most exhilarated at the

advent of AirAsia in India.

Srinivas

On the Web

JOY OF GIVING

Refer to ‘The Soul of the

New Corporation’ (March

22, 2013, issue). The cover

feature will, hopefully, open

a debate that will ultimately

redefine CSR. Spending

for supporting social

causes has, by and large,

remained at the bottom

end of priorities for the

government and corporates

so far. Without struggling

to put together a legal

definition for CSR, those

who are lucky to govern

and manage resources that

belong to society, should

take upon themselves the

responsibility to eradicate

hunger and poverty,

provide shelter and potable

water, promote literacy

and offer reasonably

affordable health care.

MG Warrier

Via Email

CHARGE YOUR CAR

Refer to ‘Electric Vehicles:

Has It Really All Come

Together?’ (March 22, 2013,

issue). EVs appear to be

a great alternative on the

face of it. Underlying this

are some facts that stare at

us. First: The availability

of power. Take Tamil

Nadu for instance. Barring

Chennai, power is available

for only 12 hours a day in

the state. Low voltage is

another evil. Second, the

government must come

out with zero tax/duty for

EVs. Instead of subsidising

diesel, it might as well

subsidise the purchase

of an EV, because this is

only a one-time subsidy

and not a recurring one.

CS Ananth

Via Email

STEEL SOLUTIONS

Refer to ‘Waiting for

Payback’ (March 22, 2013,

issue). Another smart way

to reduce the capex cost

is to acquire a running

plant from Europe or the

US. With the economic

slowdown there, it could

be had at a very reasonable

price. Around the world,

there are many stressed

assets like these, which

Indian companies must go

after in order to become

globally competitive.

Manoj Kumar

On the Web

CLICK N’ SHOP

Refer to ‘The Style Seller’

(March 22, 2013, issue).

That’s a great hike by

Myntra in a short span of

time. We should appraise

the development in the IT

and e-commerce industry

in India. Just imagine

yourself in 2005 and see

the difference in 2013.

Ashu Ashwani

On the Web

twitter.com/Forbes_India

facebook.com/ForbesIndia

linkedin.com/groups?gid=1959962

https://www.google.com/+ForbesIndia

CORRECTIONS & CLARIFICATIONS

MARCH 8, 2013, ISSUE

On Page 36 – Figures are in Rs billion and not in Rs crore.

The error is regretted.

Spending for

supporting

social causes

has, by and large,

remained at the

bottom end of

priorities for the

government and

corporates so far

April 5, 2013 | forbes india 11

/ letters to the editor /

12 forbes india | April 5, 2013

2013 Winners

Big Gifts

2013 Losers

annual SCoRECaRD

PhilanthRoPy Summit

Amancio Ortega

+$19.5 billion

Net worth:

$57 billion

Zara’s founder retired

as chairman in 2011 but

still holds nearly 60% of

fast-appreciating shares,

up 50% year-over-year

on record profits at the

trendy retail chain.

Eike Batista

–$19.4 billion

Net worth:

$10.6 billion

Brazilian who bragged

he’d one day be world’s

richest man falls from

No. 7 to No. 100, amid

plunging mining stocks,

losing the equivalent

of $53 million a day.

Warren Buffett

+$9.5 billion

Net worth:

$53.5 billion

Berkshire Hathaway’s

surging shares pumped

up the 82-year-old CEO’s

fortune, but he drops a

spot in our wealth rank￾ing because of outsize

charitable giving.

Ricardo Salinas

–$7.5 billion

Net worth:

$9.9 billion

Last year, Salinas

made more money

than anyone as shares

of his Grupo Elektra

skyrocketed; the

shares have since

fallen 50%.

Charles Koch

+$9 billion

Net worth:

$34 billion

World’s richest siblings,

David and Charles Koch,

are up $9 billion apiece,

thanks to rising refining

and chemical profits,

and solid results from

Georgia-Pacific.

Azim Premji

–$4.7 billion

Net worth:

$11.2 billion

The philanthropist gave

away Wipro stock worth

$2.3 billion this Febru￾ary. His fortune also

dropped as shares of the

outsourcing firm were

down 9% in past year.

/ leaderboard /

5,887

Total stores owned worldwide by Amancio

Ortega’s fashion retailer Inditex, including

1,938 stores in his homeland of Spain.

Since its debut three years ago,

105 billionaires have signed Warren Buffett

and Bill Gates’ Giving Pledge, promising to

give away at least half their wealth. Here

are 11 non-US billionaire signatories.

1  Vladimir Potanin

$14.3 billion ruSSia MetalS

2  Azim Premji

$11.2 billion iNDia outSourCiNG

3  Hasso Plattner

$8.9 billion GerMaNy SaP

4  Andrew Forrest

$5.7 billion auStralia MiNiNG

5  Richard Branson

$4.6 billion uK virGiN

6  Victor Pinchuk

$3.8 billion uKraiNe MaNuFaCturiNG

7  Patrice Motsepe

$2.9 billion South aFriCa MiNiNG

8  John Caudwell

$2.6 billion uK Mobile PhoNeS

9  Vincent Tan

$1.3 billion MalaySia real eState, retail

10  Mohammed Ibrahim

$1.1 billion uK Mobile PhoNeS

11  David Sainsbury

$1.1 billion uK SuPerMarKetS

Victor Pinchuk

Figures reflect the change in net worth from Feb. 14, 2012 to Feb. 14, 2013.

Sources: Interactive data via Factset Research Systems; Forbes.

Giving Pledge by Randall Lane

Buffett, Salinas: Reuters; Ortega, Koch, Batista, Premji, Pinchuk: Getty Images