India's exclusive billionaire club lost more than 30% of its membership in 2011 as the stock market meltdown caused by the economic slowdown and the government's policy paralysis wiped out a chunk of promoter wealth, according to a study by ET Intelligence Group. But the country remains on top of the heap when it comes to producing billionaires in Asia, just behind China. As many as 20 of India's 60 billionaires were edged out of the exclusive club, the study found. RPG Group's HV Goenka, Lanco Group's LM Rao, the Dhoot brothers of Videocon, GTL's Manoj Tirodkar and Tulsi Tanti of Suzlon are among the magnates who saw their holdings fall below the $1-billion mark. "Promoters and investors suffered big losses in 2011 as market sentiment was hit by macroeconomic concerns over GDP growth, fiscal deficit, corporate earnings, policy reforms and weak global cues," said Motilal Oswal, chairman & MD, Motilal Oswal Financial Services. The steep 27% fall in India's market capitalisation in 2011 did not spare the 40 billionaires either, who lost about 38% of the value of their holdings. ET calculated the wealth or net worth of promoters by multiplying the market cap of listed entities with promoter holding exclusive of cross-holdings. Despite the sharp decline in the value of stock holdings, India continues to have the second largest number of billionaires in Asia after China, according to Forbes.
