From Dhulia Dreams to Billionaire Heights: The Story of Subhash Runwal

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Nadeesh Kareemdathil, Apoorva Bajj

Jan 25, 2024 — 5 min read

The Story of Subhash Runwal

In the glittering metropolis of Mumbai, where dreams jostle for space amidst towering skyscrapers, lies the story of Subhash Runwal, a self-made real estate tycoon who defied expectations and built an empire brick by brick.

Today, the chairman of the Runwal Group, Subhash Runwal, reigns over a $1.4 billion empire. His sea-front home in Bandra, a stone's throw from Shah Rukh Khan's iconic Mannat, stands as a testament to his journey.

Runwal's story is not just about wealth accumulation, but about the unwavering spirit of an entrepreneur who dared to dream beyond the ordinary. He serves as an inspiration to aspiring Indians, proving that success often lies not in chasing pre-defined dreams, but in carving your path.

Runwal's journey began in 1964, not in the gleaming offices of Bandra, but in the dusty lanes of Dhulia, a small town in Maharashtra. Hailing from the Jain community, Runwal spent his early years in Dhulia, where his grandfather worked as a jeweler. Despite facing financial difficulties during Runwal's teenage years, he left his challenging life in Dhulia and pursued a commerce degree in Pune. Recognizing his aptitude for numbers, he chose to pursue chartered accountancy, moving to Mumbai in 1964 with only Rs 10 in hand at the age of 21.

Upon completing his CA degree in 1967, Runwal secured his first job at what was then Ernst & Ernst, which led to an American posting in St. Louis, Missouri. However, dissatisfaction with the lifestyle prompted him to return home within six months. As a young man, he initially lived in a modest studio in Mumbai's Kurla area, not far from his current RCity Mall spanning 1.2 million sq ft. Securing a job as an accountant at a chemicals firm, Runwal's proactive approach earned him a reputation as the go-to person for navigating bureaucratic challenges. Fluent in Marathi, he built rapport with local bureaucrats and politicians, making him the preferred choice for handling seemingly impossible tasks.

Market Size of the Real Estate Industry in India in 2008 and 2017, With Estimates Until 2030

One initiative involved lobbying the government to prohibit the import of a chemical that the company was manufacturing. Runwal invested considerable effort, making 52 trips to Delhi within a year to secure the crucial ban. This strategic policy change proved instrumental in the company's ability to generate profits. Concurrently, Runwal experienced an improvement in his personal life, moving to a two-bedroom apartment in Ghatkopar and subsequently upgrading to a larger home in Deonar.

After establishing a robust network within government circles, Runwal decided to take a bold leap into the real estate sector. Despite concerns from his father-in-law, a lawyer in Jalgaon, Runwal remained confident. He identified a hidden opportunity within the Urban Land (Ceiling & Regulation) Act of 1976, a stringent law that he had thoroughly studied. This legislation imposed limits on land ownership and granted the government the authority to acquire vacant urban land. (Note: The law has since been repealed in most regions.)

Runwal secured his initial 22-acre plot in Thane, a location that would eventually become a key stronghold for him. With a highly successful first property deal, he forged ahead without hesitation. Runwal developed a niche for acquiring contentious plots, entangled in the complexities of land ceiling regulations, and skillfully navigated the process to clear their titles.

Embarking on his inaugural project, he constructed the Kirtikar Apartments, a modest 10,000 sq ft apartment block in Thane. This marked the beginning of his journey into real estate success. Subsequently, Runwal expanded his portfolio by acquiring land from the Cama family associated with the Bombay Samachar Group. This included a substantial six-acre plot in Pune, now home to the esteemed Runwal Estate.

Branding his projects with his name, Runwal gained recognition for delivering affordable apartments targeted at the middle-class demographic. A noteworthy example is the project named Runwal Nagar, situated in the suburb of Thane, featuring a cluster of 16 buildings completed in 1981. Remarkably, within 18 months of the initial sale, the property's value had more than doubled.

Runwal reflects on the clientele, stating, "Our customers were individuals who had never experienced homeownership before. They would visit my office bearing boxes of pedas and express their gratitude by touching my feet."

While actively developing his real estate empire, Runwal nurtured a parallel aspiration of becoming an industrialist. Venturing into manufacturing by acquiring units in steel and pharma, these pursuits faced challenges and eventually unraveled. Consequently, he opted to divest from these businesses and refocus on his core strength in real estate.

The entry of his two sons, both with business school training, into the family business in 1995 marked a new chapter. This transition led Runwal to explore the mall business, and in 2002, the group inaugurated its first venture, the 250,000 sq ft R Mall in Mulund, featuring Amitabh Bachchan as the chief guest. Runwal acknowledges that his sons played a pivotal role in urging him to adopt a more aggressive marketing strategy and create a fresh corporate identity for Runwal. Sandeep, the elder son, holds an MBA from the Indian Institute of Management, Bangalore, while the younger son, Subodh, earned his MBA from Northeastern University.

In emphasizing the importance of timely project completion, Runwal asserts, "My projects never get stuck for approvals. Nothing is impossible."

Recently, Runwal has strategically acquired substantial plots in suburban Mumbai, including a 35-acre plot in Kanjurmarg from Crompton Greaves and a 65-acre parcel from Gammon India in Dombivli. These acquisitions aim to establish a substantial pipeline for future projects, according to Runwal's sales and marketing director, Vvikas Aroraa.

Runwal attributes a significant part of his success to his wife Chanda, a trained biochemist. As part of his daily routine, he engages in morning walks along the promenade opposite his sea-front home, sharing his neighborhood with Bollywood actor Shah Rukh Khan.

Reflecting on his achievements, Runwal expresses, "I've achieved more than I could have ever dreamt of."

Over the years, he has accumulated significant wealth amounting to $1.4 billion, approximately Rs 11,560 crore, as reported by Forbes. While Runwal continues to reside in his sea-facing mansion adjacent to Shah Rukh Khan, the allure of premium residences in Mumbai remains strong. In 2022, Bollywood's influential couple, Ranveer Singh and Deepika Padukone, made a substantial investment of Rs 119 crore to acquire a quadruplex in a luxurious residential tower near Mannat. This lavish property spans the 16th to 19th floors, encompassing an expansive 11,266 square feet of carpet area. So, the next time you gaze at the towering edifices of Mumbai, remember the name Subhash Runwal, a man who dared to dream beyond Dhulia and built his billion-dollar reality.