Shares of the sprawling multi-billionaire Reliance Industries, which counts energy as its biggest revenue driver, soared over 3 percent Monday after rising oil prices helped lift stocks of energy in India as one of the top oil producers in the world. The rise was particularly favorable for Reliance chair Mukesh Ambani, adding about $2.8 billion to his fortune and helping the 64-year-old beat the record of billionaire in infrastructure Gautam Adani to reclaim the titlel e of the most successful individual in India — and Asia.
As of Monday night, Ambani is the world’s tenth richest person, worth about $89.7 billion, the Forbes estimates as well as Adani is worth about $87.8 billion-and ranked the world’s 11th richest.
In addition to the positive news for Reliance, Reuters on Sunday announced that the company is set to acquire at the very least 200 stores of struggling supermarket chain Future Retail to expand its distribution as the nation’s largest retailer. This major victory follows the conclusion of a two-year legal battle between the firm and Future investors Amazon over Reliance’s $3.4 billion deal to purchase substantial portions of Future’s business, which is largely unprofitable. business. From late 2020, the e-commerce giant has maintained that the deal does not comply with contractual terms tied to its investments–even though Future is counting on the cash flow to pay back a defaulted loan.
“The ongoing litigation initiated by Amazon in October 2020… has created serious impediments” and resulted in an “severe adverse impact” on the company, CP Toshniwal, the chief financial officer of Future, told the stock exchange of India in a letter on Saturday. He said his company is “hopeful” the $3.4 billion agreement with Reliance will be completed before the offer expires in September. In a report by Reuters, Reliance will rebrand Future Retail. Future stores, which will still have around 1,500 locations under its flagship supermarket chain Big Bazaar. Shares of Future Retail jumped 6% Monday.
Founded by Ambani’s late father Dhirubhai Ambani in the year 1966 as a small textile manufacturer, Reliance has since grown into the country’s largest business, generating earnings of $73.8 billion (539,238 crore Indian rupees) last year–thanks to interests in telecom, petrochemicals, oil and retail. Ambani assumed control of the business of his family following his father’s passing away in 2002. His family and he control a majority stake in the company.
Despite the massive increase in Ambani’s fortunes however, a billionaire managed to get even richer on Monday. Tesla Chief Executive Elon Musk, the world’s richest person, added $14.4 billion of his fortune Monday after shares of the electric vehicle company rose 7.5 percent. After a dramatic 40% decline in Tesla shares earlier this year Bernstein analyst Toni Sacconaghi sparked the surge on Monday by telling investors Tesla’s “unique growth profile” stood apart from other tech stocks that are high-priced. Musk is currently worth $236.8 billion, nearly 60 billion more than the world’s second-richest individual, Bernard Arnault.