Gautam Adani: From Rags to Riches!!
Adani Group of companies”, a prepotent force in the Indian Business Province has always been in the news. Be it buying coal mines in Australia or be it their exclusive IPOs on the Dalal Street, Gautam Adani has always promoted unorthodox thinking. So, how did Gautam Adani become the brand he is? Here’s a look: —
Early life and education: —
Born in a middle-class family in Ahmedabad, Gautam had substantial plans. After completing 12 years of formal education from the Gujarat Board he picked up the Bachelors in Commerce. With the urge to study different business models, Gautam dropped out in the second year and moved to the “City of Dreams”, Mumbai! His first stop was Zaveri Bazaar. Gautam started his grind at a diamond trader as an identifier of diamonds and a diamond cutter. Within a period of a few years, he raked in some money and understood the working model of the diamond market. Gautam began his own trading and retail store of diamonds.
Establishing the great “Adani Group”: —
From working as a diamond cleaner, cutter, Gautam had come a long way. He got a lot of pay checks in the diamond trading industry. Simultaneously, Gautam’s brother Mansukh bought a plastic unit in Ahmedabad. For the governance of that business, Gautum moved backed to Gujarat. Plastic requires “PVC”, which was at that time produced by IPCL only. Within a period of 10 years, where in liberalization was implemented, this business boomed. Gautam now started freely importing PVC from other countries. Ship after ship after ship, consignment after consignment, Adani group was on a roll.
Now, next step from Gautam was simple, he didn’t just import PVC for his work, he also began exporting it. As a consequence, he started buying ships. In order for creating dynamic flow of the consignments, the Adani Group acquired several ships. In 1995, a government tender was acquired by Adani Group for the management of the Mundra port! This was going to turn the tables for Gautam. Acquiring the ports, led to large profits!! The Adani group now expanded its wing span to the power sector. They bought a few coal mines in Karnataka. Here again there were a few lapses. The transport for coal was difficult. So was the presence of coal. Gautum, as an absolute savage, then erected his own vertical for transport and bought coal mines in Australia!!
Controversies and Business Analysis: —
The fighting spirit that every businessman requires is definitely more than present in Gautam, or else not everyone can escape from getting kidnapped for extortion!! Gautam and his destiny of gold again showed up when he merely escaped from the Taj during the 2008 terror attacks. The “Adani Group” and its exclusive projects seemed to be readily supported by the Government. Although the ideas and the stratagems on paper have had a few hiatuses at a times, their tenders and quotations get approved smoothly.
Previously, the Adani Group’s chartered planes were seen being used by political leaders. The Adani Group definitely seems to have some connections as we readily witnessed an “Adani Bowling End” in the newly constructed Narendra Modi Stadium!! However, the account books of the Adani’s tell a different narrative. The business as of 2020 was working on a debt of 128000 CR Indian Rupees. Although, businesses do need free capital in order to process the whopping amount definitely asks us to raise an eye brow!!!!
To conclude, I would say that considering the fact that the Adani Group generates 25–30% profit every year and that the net worth of Gautam himself is 15.7 billion Dollars, the debt seems nominal. With the quick rate at which the institute is flourishing, it wouldn’t be astonishing if Gautam becomes the richest man in India!!
Credit : Nikhil Patil — Team E-Cell ABV-IIITM Gwalior