Mukesh Ambani Loses Asia’s Richest Man Title in Oil Rout

  • Mukesh Ambani's financial position has fallen by $5.8 billion in a single day due to a fall in oil prices.
  • China's Jack Ma was first on the list in 2018, and now he has once again reached the top with a net worth of $44.5 billion.
  • Many Indian manufacturers have described falling oil prices as a good opportunity.

Indian company Reliance Industries owner and leading industrialist Mukesh Ambani was the richest man in Asia until yesterday, but what happened in one day that this crown disappeared from him? On Monday, Asia’s most common market share saw a sharp fall, and oil prices dropped significantly.

Mukesh Ambani is an Indian billionaire business magnate, and the chairman, managing director, and largest shareholder of Reliance Industries Ltd. (RIL), a Fortune Global 500 company and India’s most valuable company by market value. He is one of the two richest men in Asia.

Concerns are now rising in many industrial sectors due to the coronavirus, but experts say falling oil prices may be good news for consumers. It is also a good opportunity for many countries to reduce the deficit.

According to Bloomberg Billionaires Index, the global billionaire statistics firm, Indian industrialist Mukesh Ambani’s financial position has fallen by $5.8 billion in a single day due to a fall in oil prices. As such, he is longer the richest man in Asia. That title is now held by Chinese businessman Jack Ma. Ambani is now second. Ma was first on the list in 2018, and now he has once again reached the top with a net worth of $44.5 billion. Ambani’s total wealth now stands at about $42 billion.

Ambani’s two most important sectors are Reliance Retail and Reliance Geo. People have been invited to become a member of Reliance’s grocery store, GeoMart, to get their necessities at home. GeoMart has just been launched on an experimental basis and will only be expanded on its success, and will be strengthened on a regular basis. Currently, GeoMart’s facility is available in three areas of Mumbai, called the financial center of India. Only after success in these three locations will the GeoMart network be expanded in Mumbai.

For the first time in a decade, the demand for oil has seen a significant decline due in part to the coronavirus. Many Indian manufacturers have described falling oil prices as a good opportunity, however. Uday Kotak, CEO of Kotak Mahindra Bank, tweeted that he was among them.

“Amidst turbulence and the virus, some good news – oil at $45/ barrel. Recent $20 drop saves India $30 billion per annum. Also global interest rates have collapsed making money cheap. Let’s leverage these for policy to boost growth.”

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

The big question, however, is if oil prices are falling, will Reliance Industries, whose business is largely oil-based, be able to fulfill its promise to repay all its debt by next year? To fulfill that promise, Reliance announced the sale of shares of its oil and petrochemical company to Saudi’s Aramco company.

Saudi Arabia also announced an investment of nearly $100 billion in India. Aramco and Reliance have also been widely mentioned in this investment media and were due to be invested later this month, but it is now reported that the parties have found differences regarding the terms of the deal and discussions are now underway. This investment from Saudi Arabia is very important for Ambani to pay off his debt, but in an uncertain situation, the Modi government has also filed a lawsuit against the deal.

Economists say that Mukesh Ambani’s company has invested heavily in several sectors which will prove profitable in the coming years and Reliance Industries will regain its growth momentum.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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