The coronavirus outbreak and the ongoing lockdowns have adversely affected businesses all over the world. Several billionaires and business moguls have suffered losses in the past two months.
However, amid the crisis, there is one Indian businessman who is making more money than ever. We are talking about DMart founder Radhakishan Damani.
Among the richest Indians, Damani’s wealth saw the greatest surge.
According to Bloomberg, among the 12 richest people in India (whose net worth is tracked under Bloomberg’s Billionaires’ Index), the most increase has been in Damani’s wealth.
The business tycoon’s net worth witnessed an increase of about 11% ($10.7 billion) in the first 3 months of 2020.
This increase is largely due to DMart shares which have advanced 24% this year.
How lockdown contributed to DMart’s growth.
The surge in the shares of DMart comes as the demand for essential items continues to witness rapid growth owing to the lockdown. Daily essentials are the supermarket chain’s main offering.
When the 21-day lockdown was announced, people rushed to the market to stock household items and staples. This led to a boost in DMart’s business.
Cyrus Poonawalla also earned some profits.
Along with Damani, Cyrus Poonawalla, founder of Serum Institute of India also witnessed some gains in 2020. Serum Institute of India specialized in immunological vaccines and drugs.
According to Bloomberg, Poonawalla’s net worth increased by 2.6% (to 8.9 billion).
Indian billionaires have suffered huge losses.
Other Indian billionaires like Uday Kotak, Mukesh Ambani, and Shiv Nadar have suffered huge losses in the last 2 months.
According to Hurun Research, Ambani had lost $19 billion until 31st March 2020.
DMart’s valuation is expected to increase even after the lockdown is lifted and the panic-buying has stopped. This means Damani’s net worth will keep on growing as well. The reason for this growth is its low-cost pricing strategy.
Things do not look too promising for other businesses in the near future as the pandemic continues to disrupt their operations and functioning.