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20 years ago, two brothers purchased a petrol pump in a small town in England.
By 2019, they would turn this business into a $15 billion global empire
a quick look at the meteoric rise of entrepreneur siblings, the Issa brothers —
By 2019, they would turn this business into a $15 billion global empire
a quick look at the meteoric rise of entrepreneur siblings, the Issa brothers —
Mohsin & Zuber Issa run the multi-billion dollar retail empire — Euro Garages Group.
The duo founded the company in 2001 with $150K in seed money and scaled it to a conglomerate that employs 50,000+ people today!
Last year, EG Group reported nearly $25 billion in revenues.
The duo founded the company in 2001 with $150K in seed money and scaled it to a conglomerate that employs 50,000+ people today!
Last year, EG Group reported nearly $25 billion in revenues.
Their beginnings however were much humbler.
The Issa family comes from Gujarat, India
In 1960, their parents Vali and Zubeda had migrated to the UK after Vali found a job in a small textile factory
With nothing to their name, the couple had packed bags for a better life
The Issa family comes from Gujarat, India
In 1960, their parents Vali and Zubeda had migrated to the UK after Vali found a job in a small textile factory
With nothing to their name, the couple had packed bags for a better life
Mohsin (49) and Zuber (48) were born a year apart in 1971 and 72 in the town of Blackburn, England.
Given the family's limited means, both kids had a modest upbringing and went to local schools.
Given the family's limited means, both kids had a modest upbringing and went to local schools.
In a few years, Vali quit his textile job and started running a small gas station in the neighborhood
The brothers regularly helped with selling petrol and refreshments here, learning tricks of the business on the job
The brothers regularly helped with selling petrol and refreshments here, learning tricks of the business on the job
The family ended up selling that tiny gas station in a few years as Vali retired back
The kids however, armed with some experience, and a vision decided to branch out of their own
The kids however, armed with some experience, and a vision decided to branch out of their own
The duo found a small petrol pump in the neighborhood and started with renting it out
Turning a quick profit on their first project, they managed to save $150K in capital
When a slightly bigger location down the street opened up, the duo went ahead and purchased it outright
Turning a quick profit on their first project, they managed to save $150K in capital
When a slightly bigger location down the street opened up, the duo went ahead and purchased it outright
Business was good but the Issa's were hungry for growth
Most of their customers came from nearby residential areas, so the brothers thought of adding a news-stand and a grocer at the new location
After filling fuel, customers would come in for a quick-coffee & bite.
Most of their customers came from nearby residential areas, so the brothers thought of adding a news-stand and a grocer at the new location
After filling fuel, customers would come in for a quick-coffee & bite.
The move became an instant hit! The brothers quickly doubled down
They started buying out vacant garages and lots in similarly dense residential areas nearby.
The Issa's began aggressively expanding their footprint in other neighborhoods and towns
They started buying out vacant garages and lots in similarly dense residential areas nearby.
The Issa's began aggressively expanding their footprint in other neighborhoods and towns
That's when an interesting opportunity presented itself. After the 2008 financial crisis —
1. Fuel demand was dropping
2. Government duties were rising
3. Petrol pump margins were thinning out
Big fuel companies were exiting the petrol pump business as fast as possible!
1. Fuel demand was dropping
2. Government duties were rising
3. Petrol pump margins were thinning out
Big fuel companies were exiting the petrol pump business as fast as possible!
Exxon, BP, Shell were happy to offload their assets to the Issa brothers, while they turned to focus on refining & distribution only
The Issa's however were killing it by turning petrol pumps into “refreshment” hubs, boosting avg. ticket size and total margins
The Issa's however were killing it by turning petrol pumps into “refreshment” hubs, boosting avg. ticket size and total margins
As major players vacated ground, the Issa’s went head on.
They began assuming huge debt to keep adding locations, purchasing every gas station the big companies were offloading in key UK suburbs.
They were smart about execution too —
They began assuming huge debt to keep adding locations, purchasing every gas station the big companies were offloading in key UK suburbs.
They were smart about execution too —
Before opening a new location they would seal partnerships with big brands like Subway, KFC, Starbucks etc. selling leases and securing valuable cash flow
That cash would help pay for more locations
By 2013, they had 137 gas stations all over the country!
That cash would help pay for more locations
By 2013, they had 137 gas stations all over the country!
A huge stamp of legitimacy came in 2015 when TDR Capital (a famed PE Group) acquired a stake in EG Group for £1.3bn
The investment sent shock waves across the UK finance circles.
The Issa's quickly put that capital to work — this time, leaning more on broader retail
The investment sent shock waves across the UK finance circles.
The Issa's quickly put that capital to work — this time, leaning more on broader retail
In 2017, they acquired Little Chef roadside restaurants, adding 77 locations to their portfolio.
In 2018, they’d buy 800+ Kroger convenience stores for $2 billion
By 2019, EG Group was bringing $24 billion in revenue, managing 6,000 locations all over the UK, Europe & US!
In 2018, they’d buy 800+ Kroger convenience stores for $2 billion
By 2019, EG Group was bringing $24 billion in revenue, managing 6,000 locations all over the UK, Europe & US!
Finally, the brothers added a jewel in their crown last week —
The Issa's bought a majority stake in the No.2 largest retail chain in the UK, Asda, from Walmart for a whopping $8.8 billion
The Issa's bought a majority stake in the No.2 largest retail chain in the UK, Asda, from Walmart for a whopping $8.8 billion
Mohsin and Zuber are worth nearly $5 billion each today
Along with their families, they still live in the town of Blackburn, where they grew up.
Their rise from nothing to entering UK's wealthiest list, in 2 decades, puts the power of entrepreneurship in completely new light
Along with their families, they still live in the town of Blackburn, where they grew up.
Their rise from nothing to entering UK's wealthiest list, in 2 decades, puts the power of entrepreneurship in completely new light
Links to relevant reads on this subject
Personal wiki —
https://en.wikipedia.org/wiki/Zuber_Issa
Profiles on the siblings —
https://www.manchestereveningnews.co.uk/news/greater-manchester-news/billionaire-brothers-who-built-empire-19016490
https://www.dailymail.co.uk/news/article-8784271/Rags-riches-story-petrol-station-pioneers-buy-Asda.html https://uk.reuters.com/article/us-eg-group-ipo-idUKKBN1WQ088
https://www.thenational.ae/business/economy/who-are-the-british-billionaire-issa-brothers-behind-walmart-s-6-8bn-sale-of-asda-1.1087248
EG Group Wiki —
https://en.wikipedia.org/wiki/EG_Group
Personal wiki —
https://en.wikipedia.org/wiki/Zuber_Issa
Profiles on the siblings —
https://www.manchestereveningnews.co.uk/news/greater-manchester-news/billionaire-brothers-who-built-empire-19016490
https://www.dailymail.co.uk/news/article-8784271/Rags-riches-story-petrol-station-pioneers-buy-Asda.html https://uk.reuters.com/article/us-eg-group-ipo-idUKKBN1WQ088
https://www.thenational.ae/business/economy/who-are-the-british-billionaire-issa-brothers-behind-walmart-s-6-8bn-sale-of-asda-1.1087248
EG Group Wiki —
https://en.wikipedia.org/wiki/EG_Group
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