FINANCIAL TIMES TUESDAY OCTOBER 15 2013 ★ 23 COMPANIES Reliance Family first for ’s tight­knit Riadys

as 84-year-old Lippo founder ing the lender’s assets by Mochtar Riady, and his 390 times in 15 years. sons James and Stephen, “He was never afraid to profits up face a tough battle to pull leave and start again, he off this radical change, was never sentimental,” while ensuring a smooth says the senior Lippo execu- transfer of power to the tive. “When he thought next generation. banking was no longer an with help of “In the past, many Asian area where family busi- ASIAN DYNASTIES family businesses used the nesses could compete, he Asian dynasties same strategy, to accumu- sold Lippo bank to Khaz- late assets through credit anah [the Malaysian sover- The clan faces new and that’s why everyone eign wealth fund].” rupee’s fall got into trouble in 1997,” Lippo’s day-to-day inter- challenges as it says a senior Lippo execu- ests are now controlled by seeks to thrive at tive, speaking on condition two of his children, James, GENERAL INDUSTRIALS gas exploration division, of anonymity. who handles Indonesia, and which has seen regulatory the helm of Lippo, “We haven’t been perfect Stephen, who is in charge Petrochemicals disagreements and delays writes Ben Bland in the past and if we want of business in margins higher relating to an eastern to be around for another 100 and the rest of Asia. Indian gasfield it co-owns Twelve years after Indone- years, we have to be more The third generation of with BP. sian tycoon James Riady careful and professional.” Riadys are also moving into Revenue falls 35% Reduced production suffered the ignominy of The slide in the rupiah key roles in the business, in exploration unit meant that quarterly reve- receiving the biggest US since May has revived led by John, one of James’ nues at the exploration divi- fine for breaching election memories of the last crisis, sons, who is heavily By James Crabtree sion fell 35 per cent year-on- campaign finance laws, his but the Riadys insist they involved in the family’s in Mumbai year to Rs14.6bn, even as family recently marked its are in stronger shape now, media and education com- revenues for the wider American comeback by with better management panies. The family’s lack of Reliance Industries, India’s group rose 14 per cent to acquiring the tallest sky- and fewer unhedged foreign sentimentality when it largest industrial company pass Rs1tn for the first scraper in the western US, currency debts. comes to business sits, by revenue, has posted a time. ’ US Bank Today, the , some would say awkwardly, modest increase in second- BP owns a one-third stake Tower, for $367.5m through which is an amorphous col- alongside their devout faith quarter net profit, thanks to in the company’s KG-DG OUE, a Singapore-listed lection of hundreds of com- as evangelical Christians. higher margins in its petro- gasfield following a $7.2bn entity that it controls. panies rather than a single James is an avid pro- chemicals businesses and a deal in 2011, but the part- In the intervening period, formal entity, has invest- moter of religious education sharp depreciation in the nership has been further the well-connected Riadys ments in property, health- and, in addition to the fam- rupee. undermined by indications were forced to revamp their care, retail, technology and ily’s flagship university Billionaire Mukesh that India’s government property, retail and banking education across Asia. near , which exhorts Ambani’s energy-focused may roll back a planned empire in response to their It works with a long list its 12,0000 students to conglomerate reported net increase in the price they US problems and Indone- of international investors develop a “godly charac- profits of Rs54.9bn ($894m) can charge for the gas. sia’s 1997 financial crisis. including Temasek, the Sin- ter”, and its private schools, in the period – up 1.5 per Negotiations over the pro- This set them up to rake gapore state investment they plan to establish 1,000 cent year-on-year, but it posed price rise – which in big profits from the fund, Mitsui, the Japanese schools across Indonesia was the Mumbai-based both companies say is a remarkable recovery that conglomerate and CVC Cap- teaching a Christian curric- group’s slowest rate of necessary precondition to has transformed Indonesia ital Partners, a private ulum to those with low profit increase in 2013. any further investment in from basket case into thriv- equity firm that trebled its incomes. Mr Ambani highlighted improving output – have ing emerging market. money in three years by John, a 28-year-old US- the performance of the pet- been marred by wrangling Such trials and tribula- working with the Riadys on trained lawyer, says that he rochemicals division, one of over the reasons behind tions are nothing new for a buyout of their Matahari turned down the chance to the largest producers of pol- recent production falls. the Riadys who, like the department store chain. work as an attorney in yester fibre and other mate- Reliance and BP insist other minority ethnic Chi- Their eagerness to expand James Riady: was fined $8.6m in 2001 over US election campaign financing Bloomberg New York to help develop rials, which achieved unex- that the field’s difficulties nese families that dominate overseas, and their aggres- Indonesia through the fam- pectedly high margins. are caused by geological large swaths of the Indone- sive approach to business, ily’s media and education “Reliance’s first-half per- complications, but India’s sian economy, have demon- has landed the Riadys in pare for an era of tougher Java, where he was born. It After developing good concerns. formance reflects the resil- government has appointed strated an ability to survive difficulties several times. competition. was only in 1954 when he contacts in the Chinese “People of my generation ience of our business model independent consultants to and thrive through boom The most painful was in Forbes estimates that moved to Jakarta, the capi- trading community, he have to think beyond the in a period of volatility and review the field’s perform- times and crashes. 2001 when James was fined Mochtar Riady is now the tal of newly independent secured a position as a business and take owner- uncertainty,” he said. ance. But, in an ever more com- $8.6m by the US Depart- 11th richest man in Indone- Indonesia, that he was able director of a struggling ship of the future of this “Our diversified and inte- Reliance also reported a plex and competitive world, ment of Justice after admit- sia, with a net worth of to pursue his dream of lender and helped to revital- country,” he says. grated petrochemicals busi- fall in margins at its oil large Asian family busi- ting to breaching federal $2.2bn, while the Riadys’ becoming a banker. ise its prospects – the first But for the tight-knit ness captured margins refining and marketing nesses such as the Riadys’ election laws restricting for- Globe Asia magazine pre- of a string of bank turn- Riadys – who live near across segments, delivering operations, which provide Lippo Group are being eign campaign financing by dicts Lippo will earn reve- MORE ON FT.COM rounds that made his name. Jakarta in their own Lippo near-record profit levels around half of the group’s forced to professionalise at contributing to family nues of $5.7bn this year, up It was after he was Village development, and even as the domestic econ- revenue and include its a rapid pace as they try to friend ’s run for from $4.8bn last year. For the complete series poached by Liem Sioe will be buried in their San omy slowed.” main Jamnagar facility in secure their future, bring- the White House. The family has come a examining the companies and Liong, a crony of long- Diego Hills cemetery, which This broadly positive per- western India, the world’s ing in outside expertise and But the Riadys’ foreign long way since Mochtar their roles in the economy ruling dictator General incorporates a country club, formance came despite the largest oil refinery. working with a greater forays from the US to South started his business career www.ft.com/ Suharto, to run his Bank helipad and Italian restau- continued weak perform- array of partners. Korea, China and the Phil- in the early 1950s, running asiandynasties Central Asia that Mochtar rant – family is always ance of the group’s oil and See Lex Family patriarchs, such ippines helped them to pre- a small bicycle shop in East made his fortune, increas- likely to come first.

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OCTOBER 15 2013 Section:Companies Time: 14/10/2013 - 19:15 User: wrightj Page Name: CONEWS4, Part,Page,Edition: LON, 23, 1