A. Harikumar
Gautam Shantilal Adani, chairman of Ahmedabad based multinational conglomerate Adani Group has become one of the richest five in the world, according to the latest estimates of Forbes. Reports quoting Forbes data said, Adani replaced investor Warren Buffet of Berkshire Hathaway as the fifth richest man on the Globe today.
Adani’s wealth is now estimated to be $ 122.2 billion. Only four people on the earth are richer than him. They are: Microsoft co-founder Bill Gates (worth an estimated $129.3 billion), French luxury goods king Bernard Arnault ($161.2 billion), Amazon founder Jeff Bezos ($169.4 billion) and Tesla and SpaceX chief Elon Musk who is the richest person on earth with a wealth of $ 267.0 billion.
Adani Enterprises
The rise of Adani, a first generation entrepreneur has been meteoric and incredible. The Adani Group, was born in 1988 when he established Adani Exports which is now Adani Enterprises, the holding company of Adani Group. It has now become the numero uno in India in many sectors where it operate. Though Mr. Adani began his career as a diamond trader, it is his investments in the infrastructure sector that entrenched him as a tycoon. Interestingly, among the top ten tycoons in the world, Adani is the only one who gains his strength from infrastructure investments.
Leveraging Political links?
The motto of the group is, “Growth with Goodness,” and its vision is Nation building. Though the group is sometimes accused of leveraging Mr. Adani’s political connections for business growth, the fact that their decision to invest in right sectors at the right time has helped Adani Enterprises to grow by leaps and bounds cannot be denied. Their strategy of forming alliances with global leaders that wish to be a part of India’s growth story has also helped them grow. Long-term relationships with corporations of global competence in their respective fields like Wilmar Group, Total SA, and Elbit Systems when paired with Adani Group local execution and market capabilities resulted in exponential growth.
The investments in segments like energy, ports, airports and alternative energy with a futuristic vision really paid off. Early this year, Mr Adani replaced compatriot Mukesh Ambani to become the richest Indian and Asian in February this year. Reports said his wealth sky-rocketed by 261 percent last year.
Master of Arabian Sea and Bay of Bengal
Adani Ports and Special Economic Zone (APSEZ) now virtually kings over the West and East Coast of India. The APSEZ is now developing or operating 13 ports including the Mundra Port and the Hazira Port in Gujarat, the Dighi Port in Mumbai, the Mormugao Terminal in Goa, Vizhinjam port in Kerala, the Ennore terminal near Chennai, Colombo Port’s West International Container Terminal in Srilanka and a container terminal in Yangoon, Myanmar. It had tried to gain operating rights of phase I of Chabahar Port in Iran. But the result of the bid is not known. Along with the13 ports and special economics zones they operate along India’s western and eastern coast they also have eight airports in its kitty. In fact, Adani is the biggest airport operator in India.
Adani Enterprises is reported to be India’s biggest coal trader and biggest coal contractor. Adani Green Energy is one of the biggest solar power producers in the world. Adani Power is the largest thermal power producer in India and Adani. Adani Group’s interests extend into logistics, real estate, railways, road, defence and aerospace sectors
Apprehensions
Sceptics point out that the outstanding debt of the group is around $ 20 billion and stocks of Adani group companies may be overpriced as profits are comparatively low. Some criticise that the group’s fast growth could be aided by its political connections and could suffer if a political change happens in India. However, the fact remains that Adani group has succeeded at many places where others burnt their fingers. It proves the business acumen and tenacity of Mr. Adani. With Mr Gautam Adani becoming the fifth richest in the world his empire has now become too big to be shaken by tremors.
