BR Shetty still has big plans for the healthcare and financial business in the UAE and abroad. Delores Johnson / The National
BR Shetty still has big plans for the healthcare and financial business in the UAE and abroad. Delores Johnson / The National

BR Shetty, the astute businessman who turned $8 into $1bn



BR Shetty is self-effacing almost to the point of mischief: “I am really just an ordinary salesman and deliveryman,” he says.

But the shelves of glittering awards in his office, the Order of Abu Dhabi medal pinned to his suit jacket, and the track record suggest otherwise.

This is the man who arrived in the capital with US$8 in his pocket in 1973, and proceeded to build two of the most successful and enduring business in the UAE: the hospitals and pharmacy group NMC Healthcare, and the remittance chain UAE Exchange.

Now, with NMC listed on the London Stock Exchange and UAE Exchange about to clinch a transformational takeover of the global foreign-exchange network Travelex, Mr Shetty is estimated to be worth a cool $1 billion, owns the 100th floor of Burj Khalifa in Dubai, among other baubles, and is regarded as one of the best-connected businessmen in the UAE.

Now in his 70s, he could be excused for wanting to push back from the desk and take some time with his large family, but that does not seem likely: he still has big plans for the healthcare and financial business in the UAE and abroad.

The story of the $8 suggests humble beginnings in his native Karnataka state in southern India, but in fact his family were local landlords and politicians. Mr Shetty himself played a role in civic affairs, and got qualified in pharmacy, before fate took a hand, as he explains.

“My sister was going to marry and I would provide her dowry. I didn’t want to take money from the family so I borrowed it from a bank, and then found I couldn’t repay it. My mother offered to repay it for me, but I’m a man. So I decide to come to the UAE. It was a new country, a land of opportunity,” he says.

In the 1970s, health care and pharmacy were underdeveloped. “I found a good premises and developed a good stocking system, and I became the first outdoor salesman of pharmaceuticals in the place. I was a medical rep, selling to pharmaceuticals and hospitals. I remember being one of the first to sell cartons of Nivea cream, which was quite rare then, and I earned a good reputation,” he recalls.

He saw a bigger opportunity in the healthcare market, then operating under the slogan of Sheikh Zayed “quality for all at affordable cost”, and in 1975 opened the first NMC clinic in Abu Dhabi. In the boom years that followed NMC virtually took on the role of a national health service, clinching big contracts with oil companies, the diplomatic circuit and the core Emirati market.

The financial crisis caught NMC at the wrong stage of the cycle. “Credit was tight. We found we had problems paying salaries and for supplies, and we had bank debt and creditors,” he says.

Fortunately, Mr Shetty had friends in high places, specifically Abdullah Al Mazroui, the Emirati grandee who had been his original sponsor for NMC, and Saeed bin Buti Al Qubaisi, a mover and shaker in the Abu Dhabi establishment who runs the multibillion-dirham financial business Centurion Investments.

Centurion injected equity into NMC, wiping out its bank debt. In 2012, that deal came full circle when NMC listed its shares in London. Their subsequent rise has earned hundreds of millions of pounds for Mr Shetty’s backers. Just recently, he handed Mr Al Qubaisi another substantial profit by buying shares worth about £46 million (Dh289.2m) from him. Mr Shetty owns 25 per cent of NMC, which is valued at £928m.

The NMC coup enhanced his reputation as a “rainmaker” – a profit earner – in business circles, so it was no surprise his backers were also interested in his other major business, UAE Exchange. Mr Shetty had taken this over in the late 1970s, and made it into a leading player in the booming remittance business.

“My mother’s blessing when I left India was to be of good service to the workers. Back then, workers had to queue for eight hours to send money home, and sometimes travel a long way to do it,” he says, explaining why he expanded UAEX to 700 offices in 30 countries, with a heavy focus on South Asia.

But the acquisition of Travelex is a game-changer for Mr Shetty and his financiers. No value has officially been put on the firm’s 1,500-branch network, owned by private equity backers, but speculation of a price tag around $1bn seems accurate.

“Travelex was my own acquisition. I have known them a long time and saw the opportunity. They approached me a year or so back as a potential buyer,” he explains

Even with his formidable financial resources, it is unlikely Mr Shetty has put up all, or even most, of that amount. His friends at Centurion, already equity partners in UAEX, appear to have answered the call again. “It is my own business, but my partners are my bankers. My strength is sweat.

“The bankers see my passion and success, they are open to me and they say ‘how much do you want?’ ” he says.

If Mr Shetty call pull off an NMC-type trick with UAEX/Travelex, listing it on a stock market for billions of dollars, his backers will have even more reason to thank him.

But that is not the end of his ambitions. He is considering building medical colleges in Abu Dhabi and Dubai, and reels off a list of western investors willing to back the projects with hundreds of millions of dollars.

He also wants to expand in financial services, possibly with a full banking licence in the UAE in an operation to focus on micro-finance and SME funding; and he is keen to get a full banking licence in India. “I’m sure I will get it soon,” he says.

Perhaps then he will be able to influence Indian financial policy, which brings us back to the famous $8. “Back in 1973, that was all I was allowed to take out of the country by the Indian foreign exchange controls then in place,” he explains, only slightly deflating the myth.

fkane@thenational.ae

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Without Remorse

Directed by: Stefano Sollima

Starring: Michael B Jordan

4/5

Women’s World T20, Asia Qualifier, in Bangkok

UAE fixtures Mon Nov 20, v China; Tue Nov 21, v Thailand; Thu Nov 23, v Nepal; Fri Nov 24, v Hong Kong; Sun Nov 26, v Malaysia; Mon Nov 27, Final

(The winners will progress to the Global Qualifier)

War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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The specs

Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)

Is it worth it? We put cheesecake frap to the test.

The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?

My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.

The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.

So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.

 

 

THE LOWDOWN

Romeo Akbar Walter

Rating: 2/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Robby Grewal
Cast: John Abraham, Mouni Roy, Jackie Shroff and Sikandar Kher 

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

THE 12 BREAKAWAY CLUBS

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

APPLE IPAD MINI (A17 PRO)

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Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

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In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

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Tips for newlyweds to better manage finances

All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.

Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.

Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.

Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.

Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.

Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.

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The Details

Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5