Adani's rise and controversies: A tale of ambition and shadows

Police officers tries to contol some of the stranded passengers at JKIA after aviation workers staged a strike over contraversial take over by a foreign investor on September 11, 2024. [Collins Oduor, Standard]

Gautam Adani, the billionaire head of the Adani Group, epitomises both ambition and controversy.

His spectacular rise from a modest commodities trader to one of Asia’s wealthiest individuals is remarkable, yet it is accompanied by significant scrutiny and allegations.

Born in Ahmedabad, Gujarat, in 1962, Adani, a Jain adherent, started his journey in business with humble beginnings. His father, Shantilal Adani, was a textile merchant, and his mother, Shanta Adani, supported the family’s modest lifestyle.

Adani’s story of rags to riches is admired in India. He dropped out of school as a teenager, 16, and moved to Mumbai in 1978 with just a hundred rupees in hand.

“Mr Adani, a first-generation entrepreneur, is driven by the core philosophy of infusing “Growth with Goodness” through his nation-building vision. Each of the Group’s businesses focuses on helping build world-class infrastructure capabilities to help accelerate the growth of India,” states the Adani Group. 

The duality in Gautam Adani’s name—meaning “sun” and “darkness” in Sanskrit—reflects the contrasting aspects of his business empire: celebrated success shadowed by controversy.

According to www.Britannica.com, Adani began his career as a diamond sorter in Mumbai before establishing his brokerage firm. By 1982, he had amassed his first million rupees. In 1986, he married Priti Adani, a dentist and chairperson of the Adani Foundation.

“To accomplish a passionate commitment to social obligations towards communities, fostering sustainable and integrated development, thus improving quality of life,” says the foundation on its website.

The couple has two sons, Karan and Jeet, who hold senior positions within the Adani Group.

Adani expanded his business by joining his brother’s plastics business founding Adani Exports Limited (now Adani Enterprises Ltd).

The company grew rapidly and in 1993, Adani won the contract to operate Mundra Port, now India’s largest private-sector port. He later founded Adani Power Limited in 1996.

The Adani Group’s growth accelerated through mergers and acquisitions, with Adani’s net worth soaring from $10 billion in 2020 to $125 billion by 2022. However, his success has been marred by controversy. In January 2023, Hindenburg Research accused the Adani Group of financial fraud and stock market manipulation. The Group has vehemently denied these allegations.

“The report has been dismissed by the Supreme Court, the highest court in India, and the financial community, which has heavily investigated us,” Adani told The Standard last month in a statement, adding, “As a short seller, the Hindenburg Research Report was nothing but a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive.”

Adani’s business empire spans energy, ports, logistics, mining, and more. According to media reports, the conglomerate ranks among India’s top three industrial groups, with a market capitalisation exceeding $242.73 billion as of August 2022.

Adani’s vision includes transforming India’s coastline with ports and logistics hubs, enhancing energy security, and supporting modern agriculture to boost food security. He has created tens of thousands of jobs.