Complete Case Study on Gautam Adani

This year Gautam Adani’s net worth has increased not only more than Mukesh Ambani but has surpassed the increment in the wealth of Elon Musk and Jeff Bezos as well.

Can you imagine Adani who had to leave his studies when he was only 16-17 years old has crossed $75 Billion?

After reading the entire article you will get to know about his entire life journey and we will fetch some insightful learnings out of it.

Adani Group

The total revenue of Adani Group in 2020 was $15 Billion. Adani Group works in diversified sectors like

1. Transportations
2. Logistics
3. Utilities
4. Agriculture
5. Infrastructure
6. Energy
7. Financial Service
8. Defense

Some of the Achievements are

1. Runs India’s Largest Sports and Logistic Business
2. Operates India’s largest Private Thermal Power Plant
3. Largest Power Producer of India
4. Largest Power Private Transmission Business
5. Largest Renewable Energy Business
6. Largest Coal Trading Business
7. Largest Mining and Acro Business
8. Largest Solar Power Producer

They operate at such a large stage that remembering all the achievements are very difficult.

Early Life of Gautam Adani

He was born on 24th June 1962, in Gujrat, Ahmedabad.

His father had a cloth business. They were 6 siblings, he was a commerce student and completed his schooling in Ahmedabad itself. Because of the poor financial condition of his family he had to leave his studies in the 2nd year of his college.

At that time he had the option to join his father’s business but he didn’t have any interest in that. Thus he went on the journey of creating his own identity.

Go Out of Comfort Zone 

It was not easy because when a normal person thinks of walking on his own path that had not been examined by other people in past, the cloud of uncertainty and fear surround the desires of creating something big.

Similarly, he could have joined his father’s business out of fear of exploring an entirely different path, but he took a chance to do so.

He moved to Mumbai in 1978 when he was just 16. He had only Rs.100 in his pocket.

Learn and Earn

He didn’t have any contacts in Mumbai so he used the strategy of learn and earn.

He got a job with Mahendra Brothers as a Diamond Sorter, He worked there for 2 years and then started his own sorting business.

Turning Point of his life

It was going well but in 1981 his elder brother, Mansukhbhai Adani called him back to manage his plastic factory.

Because Gautam Adani has been an eager learner he accepted the offer and shifted to Ahmedabad.

After that many new doors opened in for Adani. In 1984, govt. liberalized the import policy of the country that is why around 1984 they started importing plastic.

Soon economic condition of the country started getting worst and in the late 1980s and early 1990s and the foreign exchange reserve fell down drastically. That is why to encourage import the govt. provided various benefits indulge in it.

Take Quick Decisions:

Gautam Adani was the person who used to get almost all the deals from the government because he was an early adapter and didn’t believe in overanalyzing. His quick decision-making ability helped the entire Adani Group.

Make Best Use of Opportunities

He says, everyone gets the opportunity but the important thing is how many people can grab that opportunity and later on can execute properly.

He started Adani Ports in 1988 with a capital of Rs.5,00,000. His year-on-year growth was at the next level and only in few years, he started getting his name on the list of biggest traders in India.

Moved to Port Business

As a trader, he had a big need for ports. But existing ports were very congested which ought to lead to a delay in shipment.

At that time even realized that to improve the Infrastructure in India they have to focus on Public-Private Partnership.

To build new ports as well govt. turned to private partners, again he grabbed that opportunity and signed a deal with Gujrat govt. to develop the Mundra Port that was a little village at that time.

Believe In Yourself

When Mr. Gautam Adani signed the contract with the Gujrat govt. he didn’t have any experience to build a port but he believed in himself and build that.

Now Mundra Port has become the largest commercial port in these 15 years that helped Adani Group as well in their business.

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Expansion to other sectors as well

After Mundra Port Adani came into partnership with the government on many other projects.

In the year 2003, the cases of power shortages increased too much.

To solve it Govt. amended the Electricity Act to allow private players to enter into power generation, and Adani entered into the business of Power Generation as well.

After that in 2012-13, he entered into Power Transmission, and later on, he bought the Reliance Power Distribution Business and entered into the Power Distribution sector as well.

Govt. & Gautam Adani

Go Where There is a Market Demand

Wherever govt faced problems he used to enter in that sector

This had many benefits and in the initial days govt used to support private players from their end and Adani Group used to get resources at a very low cost.

Now Adani Group has entered into

• Defense
• Aerospace
• Data Centre

Because now Indian govt wants to become self-reliant in these sectors as well.

Now you might think why only Adani gets that much opportunity from the government. But that is not the case other companies also try to enter into these businesses as you can feel it is not that easy.

It requires a lot of money and resources and more importantly right strategies to execute the plan and that is very difficult.

It was Gautam’s amazing Leadership and Negotiation Skills that helped him.

Because of those skills, he got ACQUIRED UDUPI THERMAL POWER PLANT FOR JUST RS.6000 CRORES AND IN JUST 100 HOURS.

His support towards his team shows his leadership skills and there is one story behind that as well.

One of his employees brought a technical innovation that could have saved lots of money, but it couldn’t succeed, and instead of saving money that caused the loss of crores of rupees.

At that time that employee was so worried about his job but instead of scolding him Mr. Adani said him one sentence in a very polite manner,

“Well Tried”

That encouraged all the employees to take to give their best and try new innovative ways.

Importance of Skills

 He also posses good Convincing Skill, Gautam Adani convinced the Railway Minister of that time to connect with their Ports so that transportation of goods can become easy.

After considering that the government launched the Port Rail Linkage Policy.

Their all businesses are connected to each other. They are indulged in mining and with the help of logistic business, they transport it to the thermal power plant where they generate power out of that and after that, they themselve manage the transmission and distribution.

They entered into Electricity Business so that they can generate electricity so that it can be used at MUNDRA PORT that was converted into SEZ(Special Economic Zone).

This vertical integration helped Adani Group in multiplying their profit.

Also Read: Richest Banker in Asia, Uday Kotak

Controversies 

There are so many controversies as well related to Adani, like

His Australian Coal Mine is in a controversy that it will negatively affect the environment.

It is said that in India as well he had too many loans on him that always remains a question of doubt.

Conclusion 

Except that now Indian government is also focusing on generating renewable energy sources and so Adani has entered into that segment as well.

These controversies are a part of the business journey and we can not vanish it, but we should take some inspiration from him how a child who had to leave his studies because poor financial condition of his families has established such a huge conglomerate.