First, he became the wealthiest person in Asia. Then his fortune surpassed Warren Buffett’s and Bill Gates’s. Now he’s fast approaching a level of wealth only rivaled by Jeff Bezos and Elon Musk. Gautam Adani’s rise has been nothing short of remarkable by any standard.
During a year when many fortunes around the world have crumbled, his net worth has nearly doubled, rising from $64. 8 billion to $141. 4 billion, making him the world’s third-richest person, according to Forbes.
His surging fortune is due in part to the jump in oil and natural gas prices, which has lifted the MSCI World/Energy Index to a 36% total return in 2022, compared with an 18. 4% loss for the broader gauge of global stocks.
Despite this, Adani’s companies have outperformed the rest of the industry, with some share prices more than doubling this year. Adani Green Energy NSE 0.39% and Adani Total Gas NSE 0.05% are valued at more than 750 times earnings, while Adani Enterprises NSE 0.50% and Adani Transmission NSE -0.27 are valued at more than 400 times earnings.
In comparison, Musk’s Tesla and Bezos’s Amazon have P/E ratios of around 100, while Mukesh Ambani’s Reliance NSE 1.08% trades at 28 times. Adani has shifted his conglomerate’s focus to what Prime Minister Narendra Modi sees as critical to India’s long-term economic goals. An Adani Group representative declined to comment on this story.
According to the stock market, Adani’s moves have been enormously successful. Since 2020, shares in some of his companies have increased by more than 1,000%. In comparison, Sensex has gained approximately 44%.
Gautam Adani is the first Asian to become the world’s third-richest person
According to the Bloomberg Billionaires Index, Indian business tycoon Gautam Adani, chairman of the Adani Group, has surpassed France’s Bernard Arnault, CEO of Louis Vuitton, to become the world’s third-richest person.
Adani, 60, has surpassed the wealth of Louis Vuitton chairman Arnault and is now just behind business magnate Elon Musk and Jeff Bezos in the ranking, with a total net worth of USD 137.4 billion.
It’s the first time an Asian has cracked the top three; even fellow citizens Mukesh Ambani and China’s Jack Ma have never made it that far. According to the most recent index data, Ambani is ranked 11th, with a total worth of USD 91.9 billion.
The index is a daily ranking of the world’s wealthiest individuals. The calculations are explained in detail on each billionaire’s profile page in the net worth analysis. The figures are updated at the end of each New York trading day.
Elon Musk’s and Jeff Bezos’ net worths are currently USD 251 billion and USD 153 billion, respectively.
Adani has spent the last few years diversifying his coal-to-ports empire, investing in everything from data centers to cement, media, and alumina. The group now owns India’s largest private-sector port and airport operator, the country’s largest city-gas distributor, and coal miner. While environmentalists have criticised its Carmichael mine in Australia, it pledged in November to invest $70 billion in green energy to become the world’s largest renewable-energy producer.
However, concerns are growing about the exponential growth. Adani’s acquisition spree has been primarily funded by debt, and his empire is “deeply over-leveraged,” according to CreditSights in a report released this week/in August. This could lead to a default in the worst-case scenario, according to the Fitch Group unit.
Some lawmakers and market observers have also expressed concern about Adani Group companies’ opaque shareholder structures and a lack of analyst coverage. Nonetheless, the tycoon’s shares have soared – some by more than 1,000% since 2020, with valuations reaching 750 times earnings – as he has focused on areas that Prime Minister Narendra Modi believes are critical to India’s long-term goals.
The shift to green energy and infrastructure has attracted investments from firms such as Warburg Pincus and TotalEnergies SE, propelling Adani into the ranks previously held by US tech titans. The recent surge in coal prices has accelerated his rise.
Overall, Adani has increased his fortune by $60.9 billion in 2022 alone, five times more than anyone else. He surpassed Ambani as the richest Asian in February, became a billionaire in April, and last month surpassed Microsoft Corp.’s Bill Gates as the world’s fourth-richest person.
Adani was able to surpass some of the world’s wealthiest US billionaires, in part because they have recently increased their philanthropy. Gates announced in July that he would be transferring $20 billion to the Bill and Melinda Gates Foundation, While Warren Buffett has already donated more than $35 billion to the charity.
After Reliance Industries and the Tata Group, the Adani Group is India’s third largest conglomerate.
In the future, it intends to enter the telecom space and expand its green hydrogen and airports businesses significantly.
The Group recently announced plans to build a 4.1 mtpa integrated alumina refinery and a 30 mtpa iron ore beneficiation plant in Odisha, which could cost more than Rs 580 billion.
Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Power, Adani Total Gas, and Adani Transmission are all listed Adani group companies.