While different estimates of value of deceased liquor baron Ponty Chadha’s multi-state empire are floating around, an analysis of balance sheets by five key companies of the group shows the group’s net worth at about Rs 800 crore, while the combined balance sheet size of these five companies is around Rs 2,700 crore.
For the purpose of this analysis, Business Standard took five key companies of the Wave Inc group representing realty, sugar, distillery and entertainment businesses. These were Wave Infratech, Wave Industries, Wave Beverages, AB Sugars and Uppal-Chadha Hi Tech Developers.
Wave Infratech became the main realty company of the Ponty Chadha group sometime last year. From a meagre balance sheet size of Rs 3.75 crore at the end of FY10, Wave Infratech emerged as a behemoth, with a balance sheet size of about Rs 1,077 crore over the next year and a half. According to the latest filings in the ministry of corporate affairs, the company had investments of Rs 626 crore, fixed assets of Rs 148 crore and current assets of Rs 302 crore.
The bulk of this value was derived by the merger of three group companies — AB Movies, Chadha Infrastructure and Jessamine Fresheners —into Wave Infratech through an amalgamation scheme approved by the high court here in August 2011, filings showed. The authorised capital increased to Rs 101 crore following this amalgamation. The firm has a credit line ofRs 400 crore from Allahabad Bank.
Wave Infratech has a number of residential real estate developers under its umbrella including Country Colonisers, UP Township Pvt Ltd, and Uppal Chadha Hitech Developers Pvt Ltd. Wave Infratech owns malls and multiplexes in Delhi, Noida and Lucknow.
Uppal Chadda Hitech is another key entity, which is developing a 4,800-acre hitech city in Ghaziabad, according to the Wave website. Uppal Chadha also shows significant growth in numbers in the last financial year. In March 2011, the company saw a fresh infusion of capital to the extent of Rs 24.85 crore. The company also received long-term loans of Rs 238 crore, triggering a lot of activity that reflecting in doubling of current assets in the books to Rs 1,245 crore. Bulk of this included “other current assets”, pointing to under development projects and other work in progress. In comparison, fixed assets stood at Rs 3.65 crore.
Wave Industries, which owns a 8,300-tonne-crusher-a-day (tcd) sugar plant in Dhanaura in Uttar Pradesh, with a 30-Mw power generation facility, is the group’s flagship that controls its mainstay liquor and sugar businesses. Formerly known as Chadha Sugars, the company got its current name in 2008. Its net worth is Rs 76 crore. The firm had fixed assets worth Rs 328 crore, which is likely to be the value of the factory, and inventories worth Rs 411 crore. It also had a healthy cash balance of Rs 20 crore.
Over the years, Wave Industries has altered its business objects repeatedly to accommodate the ever-expanding business empire of the Chadhas. In 2008, the company altered its Memorandum of Association to include the business of iron ore. In 2009, it added edible and non-edible oil to its portfolio. In May 2010, iron & steel was included.
A month later, the company wanted to carry on the business of toll collection and then in March 2011, it added the business of film making to its ever-diversifying portfolio. Shareholders authorised the company’s plans to enter “the business of producers, financiers, film distributors, exhibitors and agents of films, documentaries , serials, TV films, audios and videos, plays, drama, comedies, stage shows and other programmes for information, advertisement, art, culture, education and entertainment and to act as agents, distributors, publicity and advertising agents, sponsors, (and) exhibitors of films, series, documentaries, TV films, audios and videos, plays, dramas, comedies and other programmes”.
AB Sugars, which owns a 7,500 tcd plant in Dasuya, Punjab had a net worth of Rs 111 crore. Funded by a long-term loan of Rs 200 crore, the company had fixed assets of Rs 172 crore and inventories worth Rs 114 crore. It also had a bank balance of Rs 70 crore. AB Sugars also showed in edible oils and mining and excavation businesses. Wave Beverages operated the Coca Cola bottling plant in Amritsar.