Gautam Adani - Struggle Story
In a world where academic credentials often define career trajectories, Gautam Adani's story stands out as a testament to the power of determination and entrepreneurial spirit. The Early Years: A Bold Decision Against the Norm ????♂️ Born into a modest family with seven siblings, Gautam Adani's disinterest in formal education led him to make a life-altering decision at 16: he dropped out of high school and moved to Mumbai with just a few hundred rupees in his pocket. This bold move set the stage for a journey that would defy societal expectations and rewrite his destiny.
Gautam Shantilal Adani (born 24 June 1962) is an Indian billionaire business magnate who is the founder and chairman of the Adani Group, a multinational conglomerate involved in port development and operations in India.[2][3]
Adani has been described as being close to Prime Minister Narendra Modi and to his ruling Bharatiya Janata Party government.[3][4][5] This has led to allegations of cronyism,[6] as his firms have won many energy and infrastructure contracts in India and abroad after Modi became the Prime Minister of India.[7] In January 2023, the American short selling activist firm Hindenburg Research accused Adani of stock manipulation and fraud.[8] In January 2024, the Supreme Court resolved the Adani Group stocks dispute arising from Hindenburg Research's allegations. The Court dismissed requests for an SIT or CBI investigation.[9][10] Adani's and his family's fortune has plummeted by over 50%[11][12][13][14] to an estimated US$54.2 billion, as of October 2023, while falling to the 23rd place on the Forbes Real Time Billionaires list.[15] As of February 2024, his fortune was estimated to be US$82.3 billion, placing him at the 16th place on the Forbes Real Time Billionaires list.[16]
In 2022, Times Magazine included him in the 100 most influential people in the world.[17]
Early life[edit]
Adani was born on 24 June 1962 in a Gujarati Jain family to Shantilal Adani (father) and Shantaben Adani (mother) in Ahmedabad, Gujarat.[1][18] He has 7 siblings. His parents had migrated from the town of Tharad in the northern part of Gujarat.[19] His father was a small textile merchant.[20]
He was educated at Sheth Chimanlal Nagindas Vidyalaya school in Ahmedabad. He enrolled for a bachelor's degree in commerce at Gujarat University but dropped out after the second year.[21] Adani was keen on business, but not his father's textile business.
As a teenager, Adani moved to Mumbai in 1978 to work as a diamond sorter for Mahendra Brothers.[23]
In 1981, his elder brother Mahasukhbhai Adani bought a plastics unit in Ahmedabad and invited him to manage the operations. This venture turned out to be Adani's gateway to global trading through polyvinyl chloride (PVC) imports.[21]
In 1985, he started importing primary polymers for small-scale industries. In 1988, Adani established Adani Exports, now known as Adani Enterprises, the holding company of the Adani Group. Originally, the company dealt in agricultural and power commodities.[21]
In 1991, the economic liberalisation policies turned out to be favourable for his company and he started expanding the businesses into trading of metals, textiles, and agro products.[21][24]
In 1994, the Government of Gujarat announced managerial outsourcing of the Mundra Port and in 1995, Adani obtained the contract.[4]
In 1995, he set up the first jetty. Originally operated by Mundra Port & Special Economic Zone, the operations were transferred to Adani Ports & SEZ (APSEZ). Today, the company is the largest private multi-port operator. Mundra Port is the largest private sector port in India, with the capacity of handling close to 210 million tons of cargo per annum.[25][26]
In 1996, the power business arm of the Adani Group, Adani Power, was founded by Adani. Adani Power holds thermal power plants with a capacity of 4620MW, the largest private thermal power producer of the country.[27]
In 2002, Adani was arrested by Delhi Police in execution of a non-bailable warrant (NBW), following a cheating complaint by a top official of M S Shoes. The court withdrew the NBW the next day after the court was informed that the parties were negotiating for a compromise.[28]
In 2006, Adani entered the power generation business.[29] From 2009 to 2012, he acquired Abbot Point Port in Australia and Carmichael coal mine in Queensland.[30]
In 2012, the Serious Fraud Investigation Office (SFIO) filed a charge sheet against twelve accused including Adani for cheating & criminal conspiracy related to the purchase and sale of shares. According to SFIO, Adani Agro allegedly provided funds and shares for running illegal activities. A local court in Mumbai discharged Adani & others accused of this case in May 2014.[31] However, in 2020, a Mumbai sessions court overturned the clean chit to Adani in this case.[32]
In May 2020, Adani won the world's largest solar bid by the Solar Energy Corporation of India (SECI) worth US$6 billion. The 8000MW photovoltaic power plant project will be taken up by Adani Green; Adani Solar will establish 2000MW of additional solar cell and module manufacturing capacity.[33][34]
In September 2020, Adani acquired a 74% stake in Mumbai International Airport, India's second busiest after Delhi.[35]
In November 2021, while speaking at the Bloomberg India Economic Forum, Adani said the group is investing US$70 billion in a new green energy business.[29][36][37] In July 2022, he offered new details on how this investment will be utilised to build three giant factories – solar, electrolyzer (to make green hydrogen), wind turbine plants.[38][39]
In February 2022, he became Asia's richest person, surpassing Mukesh Ambani,[40] and in August 2022, he was named the 3rd richest person in the world by Fortune.[41]
In May 2022, Adani family acquired Ambuja Cements and its subsidiary ACC from Swiss building materials giant Holcim Group for $10.5 billion, through an overseas special-purpose entity.[42]
In August 2022, AMG Media Networks Limited (AMNL), a unit of Adani Group, declared that it planned to buy RRPR Holding, owner of 29.18% of national news broadcaster NDTV, and made an open offer to buy a further 26%. In a statement, NDTV said that Adani acquired his stake via a third party without informing the company's founders, former journalist Radhika Roy and her economist husband Prannoy Roy and that the deal was done “without discussion, consent or notice.”[43] This bid also raised concern regarding editorial independence in India, since Adani is considered to be close to Prime Minister Narendra Modi’s ruling Bharatiya Janata Party.[3][44] By December 2022, Adani was described as controlling the largest shareholding in NDTV.[45][46] The Economist said that before Adani bought NDTV, the news channel was "critical of the government but is now supine."[5]
Allegations of fraud[edit]
In January 2023, Adani and his companies were accused of stock manipulation by New York-based investment firm Hindenburg Research in a report titled "Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History". Following that, Adani Group stocks plummeted $45 billion. The losses resulted in Adani dropping from the 3rd richest person in the world to 22nd on Forbes' billionaires tracker.[47][48] The report accused the group of having substantial debt and being on a "precarious financial footing", causing stocks of seven listed Adani companies to fall 3-7%. The report was released ahead of Adani Enterprises' follow-on public offering, which opened on Friday, 27 January 2023.[49] The Adani Group's CFO (Jugeshinder 'Robbie' Singh)[50] stated that the timing of the report's publication was a "brazen, mala fide intention" to damage the offering.[49] The Adani Enterprises public offering was cancelled on 1 February 2023.[51][52]
The Adani Group said that the Hindenburg Research report was "malicious combination of selective misinformation and stale" information,[49][53] and that it was "evaluating the relevant provisions under U.S. and Indian laws for remedial and punitive action against Hindenburg Research".[54][55] Alison Frankel (a senior legal writer at Reuters) wrote that it was unlikely that the Adani Group would sue Hindenburg in the U.S. because American courts usually regard financial analysis as protected opinion under American free speech laws.[56] "The Adani Group has published a 413-page rebuttal to claims by Hindenburg Research".[57][58]
The First Ventures: Learning from Failure and Success
Adani's initial foray into Mumbai's business landscape was less than successful, prompting a brief return to academia. However, his entrepreneurial drive soon led him to drop out once again, this time with a clearer vision. He began his career sorting diamonds and quickly moved on to start his own diamond brokerage, which provided him with the financial stability to explore further opportunities
In 1988, Adani founded Adani Exports Limited, now the Adani Group, with a focus on importing PVC. Capitalizing on India's economic liberalization in the 1990s, he expanded into trading metals, textiles, and agricultural commodities. His strategic move to enter the Mundra port and power plant sectors catapulted the Adani Group to new heights, eventually leading to dominance in the coal industry.
Adani's journey was not without peril. He survived a kidnapping in 1998 and a harrowing experience during the 2008 Mumbai terror attacks at the Taj Hotel. These incidents not only tested his resolve but also gave him a renewed perspective on life and business.
With great power comes great scrutiny. Adani's rise has been marred by controversies, from environmental impacts to labor issues. His close ties with political figures have also drawn criticism, suggesting that his success may be intertwined with strategic alliances and influence.
In recent years, Adani has pledged to invest billions in green energy, signaling a shift towards more sustainable business practices. This move, while not erasing past criticisms, indicates a willingness to adapt and contribute positively to the world's environmental future.
Overcoming Adversity: Kidnappings and Terror Attacks ????️
Controversy and Criticism: The Price of Power ????
A Turn Towards Reform: Investing in a Greener Future ????
