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Maharashtra and Telangana will receive 624 billion rupees investment from the Adani group! This might sound like a regular business news. But it’s not, if you are aware of the whole business plan of Gautam Adani. The conglomerate has risen like a phoenix trouncing the ghosts of the controversial Hindenburg Report, which came out on 24th January 2024.
Speaking at the Vibrant Gujarat Global Summit 2024, India’s richest businessman, Gautam Adani, said, 'It ignited a nationwide movement as all our states march forward, competing and cooperating to fundamentally remodel India’s industrial landscape.' He was referring to the efforts and governance style of Prime Minister Narendra Modi's government, which was also present at the event.
Adani: Investing in the Indian Dream!
Seems like Gautam Adani, the 61-year-old Indian billionaire, has already made his contribution to the vison of Prime Minister Narendra Modi. Speaking at Vibrant Gujarat Global Summit, he unveiled a robust investment plan for India. The Adani group will soon spend over ₹7 lakh crore in capital expenditure! In 2024, the Adani Group announced a 624 billion rupees ($7.51 billion) investment in Maharashtra and Telangana. Earlier, the Group’s Director Pranav Adani unveiled an Rs 8700-crore investment plan for Bihar. These initiatives are part of the conglomerate's seven trillion-rupee expenditure plan for the next decade.
The investment comprises establishing a 1-gigawatt data infrastructure in Maharashtra, at a cost of 500 billion rupees.
Adani Enterprises, the flagship firm of the Adani Group, will also set up a 100-megawatt data centre in Telangana.
Additionally, Adani Green Energy, Ambuja Cements, and Adani Defence Systems and Technologies have inked agreements to initiate projects in the state.
Gautam Adani’s strong belief in the Indian dream was evident in his words as he described the last decade of India growing and navigating all the challenges. He said, 'The statistics of the past decade are remarkable. Since 2014, India’s GDP has grown by 185%, and per capita income by a stunning 165%. This achievement is unparalleled, especially considering this decade's geopolitical conflicts and pandemic challenges.
2023 Vs. 2024: The Challenges of Adani Group
Adani is familiar with facing challenges. In January 2024, Gautam Adani became India’s richest man, surpassing his arch-rival Mukesh Ambani. A year ago in January 2023, the Adani Group's total market cap was Rs 19.19 lakh crore. However, things changed in the coming weeks and months. On January 24, 2023, the controversial Hindenburg Report caused the group to lose almost half of its market capitalisation. Within a month of the Hindenburg bombshell report, Adani stocks crumble, leading to the group losing over ₹12 lakh crore in market capitalization. Consequently, Adani had to intervene and take some tough measures.
Speaking to the investors after recalling the fully subscribed ₹20,000-crore follow-on public offer (FPO) in February 2023, he said, 'For me, the interest of my investors is paramount, and everything else is secondary. Hence, to insulate the investors from potential losses, we have withdrawn the FPO.
The Hypocrisy Of Indian Politics Over Adani, Ambani
The sensational Hindenburg report, titled 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History!,' pushed the group into a massive storm. The report was followed by a year-long political campaign against Adani. Rahul Gandhi, the supreme leader of the Congress party, made some sensational statements inside and outside the parliament. Along with INDIA Alliance partners (then UPA), he questioned Gautam Adani’s success and involvement in numerous businesses. Targeting his political opponent, Prime Minister Modi, Rahul Gandhi termed it as crony capitalism.
The Adani Group has been investing in various businesses operating in almost every Indian state including those ruled by the opposition parties like the Indian National Congress. However, the witch-hunt continues! Telangana, annexed by the Congress in the recently held Assembly elections, too is giving red-carpet treatment various investors including the Adani Group. With general elections just around the corner, the Adani saga is unlikely to fade away soon. In fact, it may gain further momentum during political rallies!
The Way Forward For Indian Corporate Leaders!
Meanwhile, Adani Group's market capitalisation, currently at over 13.5 lakh crore, may soon reach the 19.19 lakh crore valuation. That way it would once again touch the levels it attained on January 24, 2023,
When the Hindenburg Report was released. Earlier this month, India's Supreme Court ruled that Adani does not need to undergo further investigations beyond the current probe by the market regulator. Investing in the trust and faith of the people is key to the success of any business and the business continues for all Indian corporates. Whether Adani or Ambani, they all have to face it, keep smiling, and keep investing for a better Bharat Desh!