Gautam Adani beats Mukesh Ambani to become Asia's richest man: The rise
Gautam Adani now holds the title of Asia's Richest Man, thanks to his new net worth of $88.5 billion, which has happened recently, due to multiple factors. He has surpassed Reliance boss Mukesh Ambani on Forbes's list of Top 10 Billionaires in the world.
Gautam Adani's position on the World Top 10 list has also been a factor of the downfall of Meta Man Mark Zuckerberg, who recently lost $29 billion when Meta's stocks fell by 26% after its disappointing Quarter 4 results.
As on February 8, 2022, Adani Group of Companies in India has a market capitalisation of $146.59 billion, which comes from 6 public companies. Based out of Gujarat, the Adani Group is a market leader in transport logistics, energy utility portfolio businesses, with focus on large-scale infrastructure development.
BUSINESS PORTFOLIO
The Adani Group is split into 4 main sectors or groups:
- Energy & Utilities: This takes care of renewable wind and solar energy, solar manufacturing and natural resources. It also looks after power transmission and distribution, gas distribution and thermal power generation.
- Transportation & Logistics: This part looks after procurement, storage and logistics of grains, managing shipping ports and air terminals, thereby connecting India, and creating an industrial land (SEZ).
- Incubation: This deals with defence, aerospace, airports, sewage and water treatment, building Metro systems and data centres. This also includes growing apple orchards in Himachal Pradesh.
- Others: This includes the rest of its industries like edible oils, real estate, the financial sector and financing homes.
ADANI'S NET WORTH JUMP
Adani's personal net worth in 2016 was $3.5 billion, and was close to $10 billion by 2018. After two years (2019 and 2020) of consistent net worth of around $9 billion, in April 2021, his net worth jumped and crossed $60 billion. As on today, his net worth stands at $88.5 billion, which proves that he is the best money multiplier out there.
While most of Adani's businesses were profit-making in 2020, his Ports & Green Energy business has been super profitable and accounts for more than half of his wealth.
This sudden jump seems particular to 2020, when he acquired several new ports in the country, thereby raising their market share in the container volumes in the ports business from 5% to 41%.
Adani has also been venturing into new industries and adding data centres and coal mines to his business.
He used a golden oppportunity in 2020 when the government, for the first time in decades, opened commercial coal mining for the private sector. He bid for 12 out of 19 coal mines in the first commercial coal mine auction in India in 2020.
ADANI'S JOURNEY
Adani first started a diamond brokerage business in Mumbai, which did not work that well. After that, in 1981, he joined his brother's plastic business in Gujarat. Adani was 20.
- In 1988, he started afresh and began a small trading firm with a capital of Rs 5 lakh.
- In 1992, Adani expanded with Cargill to get together and start a salt export business.
- In 1997, Adani dived into the infrastructure business and by 1998, he started a ship docking business to help import and export of goods.
- In 2009, Adani diversified into the power generation industry.
- In 2011, he bought the Galilee Mine and Abbot Point Port in Australia, which is his most controversial purchase till date.
- In 2012, Adani became India's largest single location power producer.
- In 2013, the Mundra Port became India's largest port.
HOW ADANI MULTIPLIED HIS NET WORTH
In September-October 2018, the Central government issued about 126 tenders, which was kept in front of 23 big companies in India.
Out of the 126 tenders, Adani won 25 tenders, making it the highest tender winner at the time. It would complete 15 tenders on its own and the rest with Indian Oil Corporation.
In 2019, the Modi government auctioned 6 Airports to the private sector, and Adani group won all 6 airports, thus getting a strong hold on logistics. The Adani Group also expanded their Green Energy Solar Power projects and acquired projects like
Lanco's Thermal Project. They also bought a port from L&T (Kattupalli Port in Chennai).
Adani Total Gas has provided a one-year return of more than 1,100% till June 2021, while Adani Ports grew by more than 1,000%. Adani Transmissions grew by more than 250%, and the strong PE ratios of all stocks stand by as a testament to this fact.
Adani's companies are always investing and diversifying their reach. Adani Total Gas announced on January 31 that they would be investing about Rs 20,000 crore to expand its City Gas Distribution.
ADANI'S TWO GLORIUS BUSINESSES (GREEN ENERGY & PORTS)
Adani Green Energy started off at the stock market in 2018 with a stock price of Rs 29.45, and is currently trading at Rs 1,920 - a 6,000% growth in just 3.5 years. Adani's Green Energy's net profit for FY 21 rose to Rs 3,520 crore by 33% over the last year and its cash profits rose by 47%, while revenue increased by 54% to Rs 2,655 crore.
It is also the world's largest solar power developer and is targeting 45 gigawatts of renewable energy capacity by 2030. It will invest $20 billion to develop a 2 GW per year solar manufacturing capacity by 2022-23, which is an unofficial sign: invest in these stocks.
Adani Ports listed on the stock exchange at Rs 185.80 in 2007 and is currently trading at Rs 715, giving an original investor a return of 286% over 14 years. The cargo volume has consistenty increased over the years with the company making Rs 5,049 crore in Profits after taxes.
ADANI'S LATEST IPO
Remember the Fortune Oil ads that come on your TV? That is a part of Adani Wilmar, an FMCG food company which offers essential kitchen commodities like edible oil, flour, rice, pulses and sugar. The Fortune Oil brand just got listed today on the National Stock Exchange at a price of Rs 227, whereas its IPO price was Rs 230. Experts expect the price to go up to Rs 290-300 in the short term.