Boparan tops Asian Rich List but sector takes a big hit

THE wealth of Asian businesses in the region has taken a £474m hit over the past year due to challenging economic conditions.

The figure was released to coincide with the latest Asian Rich List, which shows the annual battle to be crowned the Midlands’ top Asian millionaire has this year gone to Ranjit Boparan, of 2 Sisters Food Group.

For the fourth year running, he retained top spot despite tough competition from steel tycoon Lord Swraj Paul.

It was also in spite of a tough year for the food group, which saw husband and wife team Ranjit and Baljit Boparan suffer significant losses in their overall wealth (dropping below their 2015 billionaire status to £900m).

After a turbulent ride, which has yet to be fully resolved, 2 Sisters Group has consolidated its position slightly but retains its own status as one of the most significant food producers in the UK.

The end of 2015 also market a turbulent – and tragic period – for Lord Paul as firstly his Black Country-based Caparo group lapsed into administration followed two weeks later by the death of his son, Angad Paul, who fell from the penthouse of his family’s home in central London.

In what has been another tough year for the economy, this year’s Asian Rich List – Midlands, published by Asian Media & Marketing Group (AMG), shows the combined overall net worth of the 51 millionaires sits at an £3.89bn.

This represents a net drop of £474m since 2015 and is largely due to the top two companies on the list facing tough times within their respective industry sectors.

Of the millionaires on the list, 27 have seen an overall increase in their net worth, with Leicester based Dr Nik Kotecha, of Morningside Pharmaceuticals being the highest climber, with an overall increase in net worth of £45m to £100m. The impressive jump takes him to fifth on the list, up from 11th sport last year.

The impact of the global economic slowdown has definitely impacted on business, with 15 of the millionaires treading water to maintain their valuations and positions; nine have dropped in their valuations.

The list does however see four new entries, with a combined value of £69m.

The highest new entry is Kailash Suri, of Reel Cinema Group, at number 32 and a valuation of £25m. Suri, who came to Britain from India in 1981 to study business management at university dropped out after struggling to pay the fees. He worked on a farm picking strawberries and was inspired enough to borrow money to buy 100 acres of farm land to grow Asian herbs. The enterprise was successful enough for Suri to buy a house in nearby Loughborough. From the cash flow the business generated he bought properties and started renting them out, building a successful property empire in the process. In 2001, his eye for a great property deal saw him open his first cinema, when he returned the art deco theatre in Loughborough to its former glory. His passion and enthusiasm for cinema and obvious business acumen has seen his family-owned group grow to become one of the UK’s largest independent cinema chains with 16 venues.

With the entry point for this year’s list being set at £12m and the criteria demonstrates that the ‘young guns’ are making their mark in the Midlands, with two of the millionaires being under 40 and 15 being aged between 40 and 50. The Midlands millionaires are in fact significantly younger (54.5 cf 61) than those featured in the national Asian rich list, with the youngest entrepreneur on the list this year being Kavi Jundu, with his West Bromwich-based cardboard box manufacturing company

Shailesh Solanki, executive editor of AMG and one of a panel of four experts who has examined British Asian wealth over the last year for the Asian Rich List, said: “This year’s Midlands Asian Rich List shows the remarkable resilience of Asian businesses. Despite another challenging year, the majority of businesses on the list continue to innovate and grow and have seen increases in their overall wealth. The power of the Midlands and the growing impact that Asian businesses have on the local and regional economy is clear and it’s encouraging to see new industries, sectors and the younger generations replacing the traditional industries to raise the profile and influence of the regions again. ”

Special guest at a ceremony to commemorate the winners was Greater Birmingham and Solihull LEP chairman, Andy Street.

Mr Street, who is also managing director of John Lewis Partnership, took part in a special Q&A session with host Nihal Arthanayake, where he shared his insights about the John Lewis model, leadership skills and employee engagement.

This year’s winners are:

Manufacturing Award: Presented to the manufacturing business that has demonstrated the highest standards of quality and controls throughout its business and production processes
Winner: Jitha Singh Sahota, Corrugated Box Supplies

Healthcare Business Award: Awarded to a company that has shown entrepreneurial flair and contributed to the nation’s wellbeing.
Winner: Nitin Sodha, Knights Pharmacy

Restaurant Award: Awarded to an establishment that has enhanced the dining and culinary experience.
Winner: Pawan Kenth & Paul Bassi, Asha’s

Community Champion Award
Awarded to an individual who has made a difference to their community and for their philanthropic work.
Winner: Raj Holness, Breaking the Silence

Spirit in the Community Award: Presented to someone for exceptional and selfless work in the community.
Winner: Maganbhai Patel, Community worker

Fast Growth Business Award with Mazars:  Given to a company that has grown the business in size and profit
Winner: Tilk Raj Mehta, Salisbury Poultry (Midlands) Ltd

Young Entrepreneur Award: Given to someone under the age of 35 who has had a major commercial role or an outstanding impact on business.
Winner: Rosie Ginday, Miss Macaroon

Entrepreneur Award in partnership with HSBC Private Bank: Presented to an outstanding businessman or woman over the age of 35 who has shown flair, innovation and drive in developing a business.
Winner: Shiraz Tejani

Asian Businesswoman Award: Awarded to an individual for consistent high achievement.
Winner: Imandeep Kaur, Impact Hub
    
Asian Business of the Year in partnership with Rybrook Rolls-Royce: Awarded to a company that is a proven commercial success and/or has an Asian at the head of business.
Winner:  Sailesh, Kamlesh, & Hasmukh Thakrar, HKS Retail