Blog 51 : Interesting Bombay Story!
The Unknown Parsi family that Could’ve been India’s richest:
1.Tatas, Wadias, Godrej, Mistrys etc – these are the Wealthy Parsi families most People are aware of, But there is one family that Could have been richer than all of them. The Dinshaws2.Framji Dinshaw was a top lawyer in Bombay and held 30 Directorships,
JRD Tata considered Dinshaw to be the most brilliant man he had ever met,
He would know since Dinshaw & Tata had a relationship,
In 1924 Dinshaw had lent ₹2 crore to bail-out Tata Steel and Tata Hydro.
3.Through a Series of events, the loan got Converted into Equity,
Dinshaw became a 12.5% Shareholder in Tata Sons – the parent of the Tata Group
Today Tata Sons is Valued at almost $110 billion.
4.Even in the Cement industry he made his impact,
Construction industry was dominated by foreign companies,
Till the 1930’s, Cement Companies in India were bleeding amidst Competition.
Dinshaw United 10 Companies to Create One Single entity: Associated Cement Companies
5.FE Dinshaw’s father loved land
His father was the biggest land owner of Karachi,
Dinshaw himself understood the way of owning land better than most,
At One Point he Owned 2,500 acres in Bombay.
6.Unfortunately, his Wealth Was Wasted,
His favourite child among 3, Makki, died in a accident,
Dinshaw blamed the other two children
He died in 1936
Soon his heirs sold the 12.5% Stake in Tata Sons to Shapoorji Pallonji,
That Stake today would be valued over 1 lakh Crore.
7.The Cement industry he united became ACC only after his death,
The company has seen multiple evolutions,
But last year it was acquired by Adani and has a market value of 35,000 Crores.
8.FE Dinshaw passed away after giving a huge inheritance to his children,
Through a Trust Fund that included Land,
Trust was designed in such a way that core capital could not be touched.
9.In the 1970’s, Maharashtra government introduced an Urban Land Ceiling Act – An Act targeting a limit on Ownership of Vacant Land,
FE Dinshaw Was found to have Owned 1500 acres of Land (today administered by Nusli Wadia of Bombay Dyeing),
In the Western Suburbs of Mumbai.
10.Govt acquired Some land from the Trusts,
They yet remain amongst the biggest landowners, but today own less than 700 acres
Encroached by slums, the land value is expected to be 50,000- 60,000 Crores,
In a generation Dinshaw family went from Supreme Wealth & Power to obscurity.
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