Rich List 2012: =No.5 - Lord Paul of Marylebone (£800m)
Like JCB, Lord Paul’s Caparo Group is reaping the benefits of trading with one of the world’s fastest growing economies.
A return to growth in some of its major markets – particularly India – along with some re-negotiating of its finances have returned the group to profit after a few years of losses.
The company saw spectacular growth up until 2007 as a result of its strategy of building up a major presence on the sub-continent.
The company’s stated aim was to be the biggest automotive business in Lord Paul’s native country.
But Caparo was hit hard by the recession and had a poor 2008 and 2009, reporting losses and causing its lenders some concerns. Now it has been restructured, with its US and Indian businesses operating on a stand-alone basis, revenues from all of the companies operations have reached £800 million.
Lord Paul’s son and Caparo chief executive Angad Paul is upbeat. He says that despite the economic uncertainties, the group has emerged stronger and more resilient. It has financial stability, greater agility and a deeper market understanding.
The Paul family has injected more money into its Indian operations and has hived off some of its North American interests. In January, the conglomerate shut its alumium foundry in Northamptonshire.
The facility, making parts for the car and aerospace industries, had not been profitable for some time. It had also been the subject of complaints from local residents about its environmental impact.
