This Indian coal boss "killed crazy"!
Surpassing Bernard Arno, the godfather of luxury and president of LV, Gautam Adani became the world's third-richest man.
The latest data show that Adani entered the top three of bloomberg's billionaire list with a net worth of $137 billion, behind Elon Musk and Jeff Bezos.
Screenshot of the list.
You know, under the influence of the new crown pneumonia epidemic, many of the world's rich people have a bad life. But Adani's assets are creeping up.
He is the only richest man in the top ten to rise in value during the year — his wealth has increased by $60.9 billion since 2022 alone.
However, unlike the "internet celebrity billionaire" Musk and Bezos, he is a fairly low-key figure. On social media, his number of followers is not even a fraction of that of the two.
What did he do to get to this point?
"Coal Boss"
In India, Adani's most widely known identity is the "coal boss".
He single-handedly founded the Adani Group, which owns 7 public companies with operations across multiple industries and a total market capitalization of more than $250 billion.
Among them, the coal industry and the power generation industry are the absolute main businesses.
In 1996, Adani saw the opportunity to privatize the Indian energy industry and established Adani Energy Company, which became an Indian coal giant.
In 2010, he spent another $16 billion to buy the 60-year use of the Carmichael Coal Mine in Australia, the largest overseas investment in India.
He gradually settled on the position of "India's biggest coal boss". Adani Group already accounts for more than a third of India's coal imports.
Holding the "giant mine" in his hand, he has earned a lot of money over the years.
Adani.
Not to mention this year. International coal demand surged, coal prices soared, and futures prices were pushed to record highs.
According to Bloomberg, Adani's rapid rise in wealth in recent months may also benefit from the company's rising coal sales.
Qian Feng, director and researcher of the research department of the Institute of National Strategic Studies of Tsinghua University, told the Global People reporter that the reason why Adani can become the third richest man in the world, in addition to the growth of his net assets, is also because the Rich In the United States are increasing their investment in charity, which has lowered the wealth value and ranking.
But it is undeniable that Adani's wealth has climbed at a "hanging" rate.
First, in February this year, he surpassed Indian tycoon Ambani to become the richest man in India and Asia;
In April, he became the billionaire and surpassed Microsoft co-founder Bill Gates in July to become the world's fourth richest man;
Today, he has risen to third in the world. Bezos's wealth is also shrinking, and he even has the momentum to catch up.
In addition to "having mines", Adani Group also monopolizes multiple industrial chains.
They have India's largest commercial port developer, the largest private power company, the largest city gas company, the largest edible oil producer... It is no exaggeration to say that most of the Indian people's food, clothing, shelter and transportation are controlled by them.
However, unlike the average rich man, Adani is very low-key. Except in India, he has little exposure in the international community.
Adani's "nemesis", India's former richest man Ambani is both high-profile and loves to show off his wealth, building a private mansion with 600 servants...
Ambani and Adani (right).
Adani's "low profile" is for a reason.
He was kidnapped by the mafia in 1998 and is said to have been released after paying the kidnappers nearly $2 million in ransom. But information such as why he was tied up has never been publicly confirmed.
After this disaster, he became more and more low-key.
Millionaire at 20
The "richest man" is not a day-old man.
Adani is not a "rich second generation". On the contrary, his origins are slightly grassroots.
Adani was born in 1962 in Gujarat, India. As the most important coastal province in western India, Gujarat was once known as the "Guangdong of India".
In this place with a strong business atmosphere, his parents were just ordinary fabric merchants and raised 7 children.
Adani's family believes in the jain (yin tongqi) religion, which advocates that one can become a "jain" (meaning "victor" ) who can attain enlightenment through hard practice. Jains are generally opposed to the caste system and attach importance to education.
In this context of growth, Adani is also eager to break out of his own way and achieve class leaps.
It also made him a bit rebellious.
After graduating from high school, he refused to inherit his father's cloth business and instead entered the University of Gujarat to study business.
But he soon found himself uninterested in studying, and after two years of "lying flat", he chose to drop out of school and went to Mumbai, the economic center of India, alone.
He first landed a position as a diamond trader at a local gem company. Two years later, he explored the local gem market and decided to start his own business and open a gem brokerage company.
He soon showed an amazing talent for business.
At the age of 20, he earned the first pot of gold in his life and became a millionaire!
After tasting the sweetness, he did not want to settle for the status quo and kept looking for new business opportunities.
After learning that his eldest brother was engaged in plastic packaging business in his hometown, he decisively sold his company in Mumbai and switched to a PVC import business.
This decision was a turning point in his life. He became involved in international trade and founded the Adani Group in 1988.
The crisis of "buying, buying, buying"
With a keen sense of business smell, Adani's ambitions grew and he began to frantically "buy, buy and buy".
Adani.
In 1991, the heavily indebted Indian government announced the privatization of state assets.
Adani saw the opportunity to buy the operating rights of the port of Mundra through a large debt sale and cooperated with Japanese companies to develop it into an Indian automobile import base.
In 2020, the port's annual throughput reached 144 million tonnes, making it the largest privately owned port in India. This is also one of his important "cash cows".
A port operated by Adani.
He was always generous.
Last November, Adani Group pledged to invest $70 billion in the green energy sector by 2030.
In May, the group acquired Holcim's Indian subsidiary and alumina manufacturing business for another $10.5 billion.
To the bewilderment of many, he is keen to choose traditional industries such as resources, logistics, agriculture and energy, which have long payback cycles and high risks.
This looks "willful".
Due to the large number of cross-border and the fact that the money has been smashed into some heavy asset industries that are slow to return on their own capital, the debt of the Adani Group has soared.
On Aug. 23, Fitch's credit research firm Credit Sights warned that Adani Group was "heavily leveraged", mainly through debt financing to expand investments in existing and new businesses.
Credit Sights said the Adani Group's massive expansion has put pressure on the company's credit indicators and cash flow, and in the worst case scenario, the group may fall into debt traps or even defaults.
Indian society is also controversial about this. Some scholars have written that Adani's strategy of expanding through high leverage is not only unsustainable, but also harmful to India's economic development.
Prime Minister's hometown
Adani once explained his investment logic: "The focus of my investment strategy has always been on the industries that are most important for the development of India's country, and it has not changed. ”
In Qian Feng's view, such a statement may also be to "stick gold" to Indian Prime Minister Modi's economic policies.
After all, Adani's "intimate relationship" with Modi is no secret.
Adani (left) with Modi.
Their friendship dates back to 2003.
At the time, Modi, who was gujarat's chief minister (equivalent to the governor), was being blamed for failing to properly handle the gujarat unrest.
At a meeting, Adani publicly defended Modi and has since helped modi create the "Vibrant Gujarat" global investment summit. The summit brought a lot of investment to Gujarat and became Modi's achievement.
Adani managed to win Modi's favor.
For Modi, who comes from a low caste, Adani, who is also from an ordinary background, is far more trustworthy than the "business elite" who studied in the Uk and the United States in Mumbai.
During Modi's more than a decade in power in Gujarat, his relationship with Adani grew stronger.
When Adani's son got married in 2013, Modi was also present and participated in the two-day trip. In the eyes of others, he is like the uncle of the newcomers' favorite...
Adani was "betting on the right treasure".
In 2014, Modi was elected Prime Minister of India. After this, Adani is said to have provided Modi with a fleet of private jets to travel between Gujarat and New Delhi.
But Adani was a businessman after all. He has been questioned in both political and business circles.
Adani.
With Modi's support, Adani Group has leased a large amount of land from the state government at low prices for subleasing or growing cash crops, According to forbes.
This sparked protests from many Indian farmers. They accused the move of illegal land annexation, but it was ultimately over.
After Modi came to power, the Adani Group entered the new energy industry and air transport industry with great fanfare, and also received a large amount of financial support from Indian state-owned enterprises and banks.
In the eyes of many people, the smooth sailing of Adani's business depends on the friendship with this fellow countryman.
Qian Feng told the "Global People" reporter that Adani can be said to be a special case in India's rich circle. Because he is the "rich generation", there is no wealth base of previous generations. Decades ago, he was just an obscure man, and today's achievements are unimaginable in India.
Therefore, his political and business relations will inevitably attract attention. "As for what role his personal friendship with Modi played, there is no empirical evidence at present. But there is no denying that he has a close relationship with the Indian National Volunteer Service Corps (RSS). He supported the Bharatiya Janata Party (BJP) by donating money to RSS, which was also an indirect momentum for Modi during his campaign. Qian Feng said.
Qian Feng mentioned that although Adani is a Jain, the BJP believes that modern RSS and Jainism are partners in working together ideologically and economically. Modi also places great value on Jains.
"However, the tight bondage with BJP, RSS and Modi will put Adani in a situation of 'success and failure'." Qian Feng said.
For Adani, in addition to the relationship between government and business, the risks of its business strategy cannot be ignored. "Adani Group has seen excessive leverage, and debt financing is like a snowball, burying a series of financial risks."
It seems that it is not easy for Adani to sit firmly in this position of the "richest man".
Column Editor-in-Chief: Gu Wanquan Text Editor: Cao Fei Title Image Source: Visual China Image Editor: Cao Liyuan
Source: Author: Universal Character Zheng Aotian Fu Yumei