Gupta Becomes Billionaire as Havells Climbs to Record

Gupta Becomes Billionaire as Havells Climbs to Record

Qimat Rai Gupta became a billionaire as shares of Havells India Ltd. (HAVL), the nation’s largest electrical parts maker by market value, surged to a record.

Gupta, 77, and his family control almost 62 percent of the company, according to exchange filings, a stake valued at $1.4 billion, according to the Bloomberg Billionaires Index. Anil Sharma, a spokesman for Havells, confirmed the family stake in the company based in Noida, near New Delhi.

The maker of lighting products, cables and fans has benefited from rising incomes in the world’s second-most populous nation as consumers shift to branded products, Firstcall Research said in a June 3 report. Havells owns Sylvania, a European maker of Lumiance lighting products.

“They have shown steady and quality performance in terms of growth and earnings,” said Gautam Chhaochharia, head of research at UBS Securities India Pvt. in Mumbai, who has a buy recommendation on the Havells. “That’s given investors confidence in the stock.”

The stock rose for a fifth day, advancing 1.1 percent to a record 1,067.55 rupee at the close in Mumbai yesterday. The shares have surged 35 percent this year, twice the gain for the S&P BSE Sensex (SENSEX) benchmark gauge.

Gupta, who’s the chairman of Havells, controls the fortune along with his family, including son Anil Rai Gupta and daughter-in-law Sangeeta Gupta.

School Teacher

In 1958, Gupta, then 21, quit his job as a school teacher in India’s Punjab state and moved to Delhi. With less than $200, he started a trading company selling fixtures and electric cables to businesses, according to Havells’ website.

He bought the Havells brand more than a decade later and expanded it from a garage-based manufacturing and distribution company to a business with about a dozen factories in India, as well as in Europe, Latin America, Africa and China, according to its website.

The company acquired SLI Holdings Inc.’s lighting business for 227 million euros ($309 million) in 2007 and sells electrical products under brand names including Crabtree, Concord and Standard, according to its website.

“Over a period of time, they have consistently grown with stable, improving margins, which have led to earnings growth,” UBS’s Chhaochharia said.

To contact the reporter on this story: Netty Ismail in Singapore at nismail3@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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