Gautam Adani, the Indian infrastructure tycoon, has now become the world’s newest centibillionaire, having joined an elite club of only nine other businessmen who have fortunes of more than $100 billion, including Elon Musk, Jeff Bezos, Bill Gates, and Warren Buffett. He is the only Indian in the club at the moment and has surpassed Mukesh Ambani, who had previously held the title of the richest man in India and Asia for a very long time.
Gautam Adani‘s remarkable journey to the top began in 1988 when he dropped out of college and turned down his father’s textile enterprise to start a commodities export company. Gautam Adani first entered the billionaire ranks in 2008, with an average net worth of $9.3 billion. Adani has stated that he intends to become the world’s largest green energy producer, with plans to invest up to $70 billion in renewable energy projects.
The Adani Group now has a market capitalization of over $100B, and is made up of seven publicly traded companies that operate in sectors such as power generation and distribution, renewable energy, gas and infrastructure, logistics (seaports, airports, shipping, and rail), mining and resources, and others.
How did Gautam Adani make the cut?
According to stock market professionals, the rise in commodity prices has caused Adani stocks to jump. The surge in commodity prices, particularly in the price of palm oil, has resulted in increased trade activity, which indicates more revenue for Adani Ports. Additionally, the increase in palm oil prices provides Adani Wilmar with a margin boost on its unsold inventories.
Adani Group’s stock has performed excellently on stock exchanges, despite equity indices being beaten down by the Russia-Ukraine conflict for more than a month, which caused considerable market volatility.
The following are some of the most notable events that have occurred in recent times, causing Adani stocks to skyrocket:
- Adani Power’s stock has risen after the Supreme Court ruled in its favor, ordering the Rajasthan-based 3 Discoms to pay the company’s debts in the last week of March 2022.
- Adani Wilmar, Adani Power, Adani Port, Adani Enterprises, and Adani Total Gas all achieved a new 52-week high on the National Stock Exchange on April 1.
- Goutam Adani’s fortune skyrocketed past the 12-figure threshold after the announcement that Abu Dhabi’s International Holding Co. made a $2 billion investment in three of his green energy-focused entities: Adani Green Energy, Adani Transmission, and Adani Enterprises, on April 8, 2022.
- Adani Wilmar gained by nearly 86%, while Adani Enterprises rose by over 26%, Adani Total Gas went up by more than 52%, Adani Port rose by over 15%, and Adani Transmission by around 17%. Adani Power has gained over 86%; on the other hand, Adani Green Energy gained more than 57% in a month on the NSE.
- Gautam Adani’s portfolio firms want to invest more than $50-70 billion in the renewable energy value chain and also have committed 70% of planned CAPEX till 2030 to the energy transition.
Gautam Adani holds a 75% stake in Adani Enterprises, Adani Power, and Adani Transmissions, as well as a 65% stake in Adani Ports and Special Economic Zone, a 61% share in Adani Green Energy, and a 37% stake in Adani Total Gas through the Adani Group. The Adani Group’s total market capitalization is Rs. 16.02 trillion (as of April 11, 2022).
Gautam Adani now owns India’s largest port operator, a tightly guarded thermal coal plant, and a coal trader. He also bought a 74% share in Mumbai International Airport, India’s second busiest airport, in 2020.
As per the Bloomberg Billionaire Index, as of April 13, 2022, Gautam Adani’s net worth rose to $118B, taking him to the sixth rank, right after Warren Buffett, with a net worth of $127B, and leaving Mukesh Ambani far behind, with a net worth of $95.2B. His wealth has increased by $41.1B so far this fiscal year.
Bottom line:
You either need to become a technical inventor or a luxury retail mastermind if you want to move a little closer to getting on the list of the world’s wealthiest billionaires. You might also have to keep things simple and focus on value investing. Because, the greatest fortunes began with brilliant ideas that were implemented by people with creativity, determination, and connections to create some of the world’s largest corporations.
Writer: Arpita Chatterjee
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