Secret Behind The Meteoric Rise
In 1988, Adani Group was born when Gautam Adani dropped out of college to set up a business to import and export commodities. His philosophy of ‘nation building’ has led to the conglomerate’s massive scale and expansion. He was ahead of his time to set up companies like Adani Green Energy, which stands as the future of tomorrow.
Gautam Adani picked up hot new industries that the government was looking at and where the competition was relatively lesser. When PM Narendra Modi pledged to develop local defence equipment manufacturing, Adani built the capacity to supply the military by partnering with defence contractors. Since 2019, the group is now focused on airports, data storage and financial services. Adani’s track record of entering into potential sectors at the right time is the biggest trigger behind the massive rise of all seven stocks.
Should This Concern You?
The group not only has cash-generating assets but also a debt pile of $20 billion. It continues to raise funds for its renewable energy ambitions. Also, the market is cautious of the high valuations of the listed companies. Despite these concerns, investors have been riding the wave. They believe Adani has the ability to scale up after taking calculated risks. International investors and global energy majors are trying to grab a piece of the attractive Adani’s empire.
What Lies Ahead?
The group is signing strategic collaborations with global energy majors, inking partnerships with IT giants, building airports and much more. Unlike other companies, it has already entered into these sectors and will only expand now. There seems to be ample growth left before Adani Group takes a hit.
