NEW DELHI: Gautam Adani is not the most revered businessman back home, but that hasn’t stopped him from rising to the top of the global richest chart — he is the second wealthiest person (with $147 billion net worth) on earth. For a first-generation self-made billionaire, this is no mean feat. Adani’s ascent to the top of the global business scene is stellar, to say the least. From a humble beginning as a commodity trader in the 1980s, Adani scripted an uncanny success story over the past three decades using his vision, grit and risk-taking abilities.
Notwithstanding the allegations of his closeness to power, and the alleged favours he garnered from those in power, Adani charted a path of success that’s an object of envy and debate, alike. Not the most ‘expressive’ business leaders (at least publicly), Adani’s aggressive expansion of his business empire defies his otherwise calm demeanour.
Adani Enterprises, the umbrella company that holds several of his diversified businesses, was started as a commodity trading company in 1988. He got it listed in 1994 at 150 with the shares getting subscribed 25 times — two years ago Infosys had gotten listed at 145 a share. Within a short span of six to seven years, Gautam Adani was running ports, FMCG, mineral & mines businesses.
His success was already getting attention, but not all the right kind. In 1997, he was kidnapped for ransom in Ahmedabad allegedly by two underworld dons, who were later acquitted by the court in want of evidence.
With the turn of the century, as India was emerging as an economic powerhouse, Indian businesses were growing ambitious and impatient. Adani, after having tasted success in his multiple ventures in a short span of time, was ready for the next big leap. So, he went shopping overseas and bought coal mines in Indonesia and the now controversial (Carmichael Mines) in Australia.
He has the knack of finding himself in the midst of action – sometime unwanted as in 2008, when he got stuck in the iconic Taj hotel during the terrorist attack on the fateful night of 26 November. In his own words he witnessed death from a distance of 15 feet. But Adani has managed to wade through personal and professional roadblocks – many of his projects in Indian and overseas have met with protests, legal challenges and also financing issues.
Yet Adani has managed to ‘incubate’ multiple businesses covering a large number of sectors from mines and mineral, power, port to FMCG. And he keeps adding to the portfolio more businesses. So, he added airports, cement, data centres as well as green energy to the bouquet.
The combined market cap of his group companies now exceeds $200 billion or around `16 lakh crore — apparently now more than that of the Tata Group, which has been around for over 150 years. In his message to investors in the annual report of Adani Enterprises this year, Gautam Adani had said quoting Winston Churchill, ‘Success is not final”. This aptly describes Adani’s quest for new glories, and his urge to own newer businesses and establish them as the leader in their respective sectors.
But his unhindered ‘success’ has raised eyebrows. Half of his wealth (of $147 billion) has come in 2022 alone on the back of, what many analysts say, logic-defying valuations of some of his listed companies — Adani Enterprises, for example, is trading at 422 times 12-month trailing earnings compared to say Reliance Industries, which is trading at 26 times earnings. The burgeoning debt of the group (at `2.6 lakh crore) is also the talk of the town now. Many find it unsustainable in the long run.