Adani Group has grown to be one of the largest conglomerates in India, with diversified interests ranging from ports and power plants to renewable energy and data centres
Gautam Adani, born on June 24, 1962, in Ahmedabad, Gujarat, India, is a prominent Indian industrialist and the founder of the Adani Group, a conglomerate with a diverse portfolio spanning energy, infrastructure, and telecommunications.
His rise from humble beginnings to global prominence is an inspiring rags-to-riches tale, but it has also been marred by controversies and legal challenges, shaping his complex legacy.
Early life and family background
Adani was born into a Gujarati Jain family, the seventh of eight children. His father, Shantilal Adani, was a textile merchant, and his mother, Shanta Adani, played a supportive role in the family’s upbringing.
Despite showing early promise, Gautam dropped out of school at the age of 16, choosing to pursue business ventures instead.
This decision set the stage for his entrepreneurial journey, one that would eventually change the landscape of Indian business.
In 1986, Adani married Priti Vora, a dentist who would later become the chairperson of the Adani Foundation, the philanthropic arm of the Adani Group.
The couple has two sons, Karan and Jeet, who now hold senior roles within the family business.
Business beginnings
Adani’s career began in 1978 when he moved to Mumbai to work in the diamond industry. By 1982, he had made his first million rupees, a significant achievement for someone with no formal business education.
In 1985, he returned to Ahmedabad and worked at a plastics factory owned by his brother. Soon after, the family business began importing polyvinyl chloride (PVC) and capitalised on a shift in government policy that relaxed import licensing, which helped propel the business forward.
During the 1990s, Adani expanded his business empire in alignment with India’s liberalisation of its economy, which opened up opportunities in infrastructure development.
The Adani Group made a major leap in 1995 when it won the contract to develop Mundra Port in Gujarat, a project that would become the cornerstone of the group’s success.
The Adani Group’s rise
Mundra Port, which became operational in 1998, helped establish the Adani Group as a dominant player in the infrastructure sector.
However, the development of the port, which bypassed several environmental and social safeguards, attracted criticism and resentment.
Despite these challenges, the Adani Group continued to grow, benefiting from India’s liberalising economy and the support of the Gujarat state government, which at the time was led by Narendra Modi, a politician with whom Adani would later form a close association.
Adani’s ties with the BJP (Bharatiya Janata Party) and Narendra Modi deepened in the 2000s. Adani was a key supporter of Modi during his controversial tenure as minister, especially during the 2002 Gujarat riots, which saw widespread violence.
While many businesses pulled out of Gujarat due to the unrest, Adani doubled down on investments, helping strengthen his ties with the state governmentPolitical Connections and Controversies
Adani’s relationship with Modi played a significant role in the Adani Group’s expansion. After Modi became the Prime Minister of India in 2014, Adani’s business empire saw significant growth.
Adani’s companies benefited from government policies that facilitated large-scale infrastructure projects, including winning lucrative contracts to build and operate airports.
However, the Adani Group’s rapid expansion, particularly in areas such as energy, cement, and agribusiness, has attracted accusations of crony capitalism.
The group’s winning bids for six airport privatisations in 2018, despite criticism of the process, only added to concerns about the close ties between Adani and the government.
The Hindenburg controversy and legal challenges
In 2023, the Adani Group faced a major setback when Hindenburg Research, an activist short-selling firm, accused the conglomerate of stock manipulation and financial misconduct.
The report led to a massive loss of value in the Adani Group’s stock, with the company losing more than $50 billion in market value within days.
In response, Adani dismissed the allegations as politically motivated, asserting that they were part of a broader attack on India’s growth story.
In 2024, Adani was charged in the United States for allegedly bribing Indian government officials in a scheme to raise funds from American investors.
The Securities and Exchange Commission (SEC) accused Adani and several others, including family members, of conspiring to secure contracts for his renewable energy ventures.
As of October 2024, the Adani family’s net worth stands at $116 billion, a significant recovery from the setbacks of the previous year. These challenges added to the growing scrutiny surrounding Adani’s business practices globally.
