The China Mail - Gautam Adani: the Indian tycoon weathering stock market panic

USD -
AED 3.672499
AFN 65.000102
ALL 80.716215
AMD 378.656912
ANG 1.79008
AOA 916.999995
ARS 1444.5061
AUD 1.42104
AWG 1.80125
AZN 1.703701
BAM 1.633386
BBD 2.013103
BDT 122.138616
BGN 1.67937
BHD 0.376968
BIF 2960.735925
BMD 1
BND 1.261227
BOB 6.906746
BRL 5.197202
BSD 0.999495
BTN 91.809686
BWP 13.078391
BYN 2.841896
BYR 19600
BZD 2.010222
CAD 1.35408
CDF 2240.000163
CHF 0.765525
CLF 0.021855
CLP 862.939783
CNY 6.95465
CNH 6.94074
COP 3670.36
CRC 496.072757
CUC 1
CUP 26.5
CVE 92.086637
CZK 20.29245
DJF 177.719931
DKK 6.235745
DOP 62.885991
DZD 129.171921
EGP 46.837506
ERN 15
ETB 155.421337
EUR 0.83513
FJD 2.1911
FKP 0.725629
GBP 0.72366
GEL 2.695061
GGP 0.725629
GHS 10.924686
GIP 0.725629
GMD 73.000235
GNF 8770.633161
GTQ 7.668217
GYD 209.112281
HKD 7.80161
HNL 26.37704
HRK 6.2933
HTG 130.891386
HUF 317.563026
IDR 16741.65
ILS 3.097875
IMP 0.725629
INR 92.04105
IQD 1309.331429
IRR 42125.000158
ISK 120.909983
JEP 0.725629
JMD 156.680488
JOD 0.709025
JPY 153.081999
KES 129.000187
KGS 87.450173
KHR 4017.905611
KMF 412.000074
KPW 899.941848
KRW 1427.75028
KWD 0.30645
KYD 0.832978
KZT 503.603671
LAK 21533.681872
LBP 89506.589387
LKR 309.494281
LRD 184.910514
LSL 15.892551
LTL 2.95274
LVL 0.60489
LYD 6.276907
MAD 9.037126
MDL 16.761456
MGA 4459.737093
MKD 51.481981
MMK 2099.981308
MNT 3572.641598
MOP 8.032705
MRU 39.899616
MUR 45.090023
MVR 15.460024
MWK 1733.186347
MXN 17.16525
MYR 3.918993
MZN 63.759786
NAD 15.892618
NGN 1394.459919
NIO 36.779996
NOK 9.574604
NPR 146.893491
NZD 1.65069
OMR 0.384496
PAB 0.999516
PEN 3.344329
PGK 4.278419
PHP 58.780105
PKR 279.608654
PLN 3.512035
PYG 6712.014732
QAR 3.634154
RON 4.256097
RSD 98.041985
RUB 76.546829
RWF 1458.255038
SAR 3.750365
SBD 8.077676
SCR 13.753586
SDG 601.498846
SEK 8.82156
SGD 1.261875
SHP 0.750259
SLE 24.303915
SLL 20969.499267
SOS 570.233129
SRD 38.092028
STD 20697.981008
STN 20.460913
SVC 8.745579
SYP 11059.574895
SZL 15.88602
THB 31.139852
TJS 9.34036
TMT 3.5
TND 2.858467
TOP 2.40776
TRY 43.413099
TTD 6.783978
TWD 31.282102
TZS 2560.000284
UAH 42.724642
UGX 3578.571995
UYU 37.82346
UZS 12092.817384
VES 358.47615
VND 26065
VUV 119.671185
WST 2.725359
XAF 547.815484
XAG 0.008493
XAU 0.000182
XCD 2.70255
XCG 1.801312
XDR 0.68021
XOF 547.813197
XPF 99.5983
YER 238.393717
ZAR 15.709905
ZMK 9001.201624
ZMW 19.865039
ZWL 321.999592
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    0.0000

    82.4

    0%

  • CMSC

    -0.1000

    23.7

    -0.42%

  • RYCEF

    -0.5500

    16.6

    -3.31%

  • RELX

    -0.9800

    37.38

    -2.62%

  • VOD

    0.0700

    14.57

    +0.48%

  • NGG

    0.3700

    84.68

    +0.44%

  • GSK

    -0.7000

    50.1

    -1.4%

  • BCC

    -0.8900

    80.85

    -1.1%

  • BCE

    -0.2500

    25.27

    -0.99%

  • BTI

    -0.1800

    60.16

    -0.3%

  • RIO

    0.4600

    93.37

    +0.49%

  • CMSD

    -0.0457

    24.0508

    -0.19%

  • JRI

    -0.6900

    12.99

    -5.31%

  • AZN

    -2.3800

    93.22

    -2.55%

  • BP

    0.0800

    37.7

    +0.21%

Gautam Adani: the Indian tycoon weathering stock market panic
Gautam Adani: the Indian tycoon weathering stock market panic / Photo: © AFP

Gautam Adani: the Indian tycoon weathering stock market panic

Indian industrialist Gautam Adani is Asia's richest man, with a business empire spanning coal, airports, cement and media now rocked by corporate fraud allegations and a stock market crash.

Text size:

But the billionaire -- who this week lost $25 billion to his net worth and tumbled from third to seventh place on Forbes' global rich list -- is one of the business world's great survivors.

On New Year's Day in 1998, Adani and an associate were reportedly kidnapped by gunmen demanding $1.5 million in ransom, before being later released at an unknown location.

A decade later, he was dining at Mumbai's Taj Mahal Palace hotel when it was besieged by militants, who killed 160 people in one of India's worst terror attacks.

Trapped with hundreds of others, Adani reportedly hid in the basement all night before he was rescued by security personnel early the next morning.

"I saw death at a distance of just 15 feet," he said of the experience after his private aircraft landed in his hometown Ahmedabad later that day.

Adani, now 60, differs from his peers among India's mega-rich, many of whom are known for throwing lavish birthday and wedding celebrations that are later splashed across newspaper gossip pages.

A self-described introvert, he keeps a low profile and rarely speaks to the media, often sending lieutenants to front corporate events.

"I'm not a social person that wants to go to parties," he told the Financial Times in a 2013 interview.

Adani was born in Ahmedabad to a middle-class family but dropped out of school at 16 and moved to financial capital Mumbai to find work in the lucrative gems trade.

After a short stint in his brother's plastics business, he launched the flagship family conglomerate that bears his name in 1988 by branching out into the export trade.

His big break came seven years later with a contract to build and operate a commercial shipping port in his home state of Gujarat.

It grew to become India's largest at a time when most ports were government-owned -- the legacy of a sclerotic economic planning system that impeded growth for decades and was in the process of being dismantled.

Adani in 2009 expanded into coal, a lucrative sector for a country still almost totally dependent on fossil fuels to meet its energy needs. However, the decision brought international attention as he rose rapidly up India's rich list.

His purchase the following year of an untapped coal basin sparked years of "Stop Adani" protests in Australia after dismay at the project's monumental environmental impact.

Similar controversies plagued his coal projects in central India, where forests home to tribal communities were cut down for mining operations.

Adani's $900 million coastal port project in southern Kerala state was the site of violent clashes between police and a local fishing community demanding a halt to construction.

- 'Extraordinary growth' -

Adani is seen as an acolyte of Hindu nationalist Prime Minister Narendra Modi, a fellow Gujarat native, and has aligned his own business interests with those of "nation building".

He has invested in the government's strategic priorities, in recent years inaugurating a green energy business with ambitious targets.

Last year he launched and completed a hostile takeover of broadcaster NDTV, a television news service considered one of the few media outlets willing to outwardly criticise India's leader.

Adani batted away press freedom fears, but told the Financial Times that journalists should have the "courage" to say "when the government is doing the right thing every day".

The billionaire has also channelled Modi's strident rhetoric when talking about the historical injustices suffered by India during the era of British rule.

"A country, crushed and drained by its colonial rulers, today stands on the cusp of extraordinary growth," he told a business forum in November.

- 'Deeply overleveraged' -

But Adani Group's rapid expansion into capital-intensive businesses has raised alarms, with Fitch subsidiary and market researcher CreditSights warning last year it was "deeply overleveraged".

This week a bombshell report from US investment firm Hindenburg Research claimed the conglomerate had engaged in a "brazen stock manipulation and accounting fraud scheme over the course of decades".

Hindenburg said a pattern of "government leniency towards the group" stretching back decades had left investors, journalists, citizens and politicians unwilling to challenge its conduct "for fear of reprisal".

Adani Group has lost upwards of $45 billion in market cap since the report's release, and its legal chief announced Thursday that it was exploring punitive action against Hindenburg in US and Indian courts.

The issues now facing Adani's empire "strike at the heart" of India's corporate sector and the dominance of family-controlled firms, Global CIO Office chief executive Gary Dugan told Bloomberg on Friday.

"By their very nature they are opaque, and global investors have to take on trust the issues of corporate governance," he said.

R.Lin--ThChM