Handelsblatt: Who is the richest man in Asia who is hated by climate activists but respected in the stock market

When Gautam Adani talks about the enormous potential of his homeland, India, he sounds a bit like a politician in an election campaign. In a recent speech in the economic metropolis of Mumbai, the businessman predicted the end of poverty for the country and an unprecedented rise in one of the world’s leading economic powers, Handelsblatt comments.

“No other country will grow as fast as India in the next three decades,” he said. Nowhere in the world, he said, will there be as large a middle class as in the emerging country, which already has a population of 1.4 billion. Among his suggestions, Adani pauses to give the audience ample room for applause. The man with the characteristic dark mustache and the neat side parting enjoys his role as the main visionary and financial supporter of the subcontinent.

The son of a textile merchant can underline the position that India is the new country of unlimited opportunities with his own biography: As a student who dropped out of college, he became a multimillionaire. In the last two years alone, he has increased his fortune tenfold to $ 112 billion. Shortly before his 60th birthday in June, Adani has become the richest man in Asia – and he is battling US investment legend Warren Buffett for fifth place in the global rich list.

But the head of the energy and infrastructure group that bears his name, Adani, is not content with that. It is currently in the midst of a multibillion-dollar takeover attack to further expand its influence in Asia’s third largest economy.

As it was announced at the weekend, it buys the Indian company of the Swiss building materials group Holcim for more than 6 billion Swiss francs, making it one of the most important cement manufacturers in the country. Twelve months ago, it had already acquired 30 other companies from a wide range of industries for at least $ 6 billion – from a media group to a holiday portal and a premium rice brand.

Greta Thunberg protested against Adani

Behind this is Adani’s attempt to become increasingly independent of the fossil fuel business, which in the past was the basis of his wealth. Adani started his business career in Gujarat in the 1980s after dropping out of school and working for his brother in the plastics industry for a while.

His first decisive discovery came a decade later, when the local government allowed him to run a private port in the city of Mundra on the west coast of India.

Adani developed the facility in the subcontinent’s most important industrial port and used India’s new infrastructure hub to make itself necessary for the emerging country’s economic boom: Through the port of Muntra, it began importing bulk coal from abroad and quickly became the market leader.

To secure supplies, he bought a coal mine in Indonesia. He used the raw material to power his own power plants in his group, which became India’s largest private energy supplier in 2014.

His coal deals have put Adani at the center of a global campaign by climate activists who protested three years ago against the start of construction of an Adani coal mine in Australia. Siemens also came under fire for agreeing to supply signaling equipment for the project.

Activist Greta Thunberg called on the German company to cancel the agreement with Adani in order to “stop, delay or at least disrupt” its mining plans. However, the then owner of Siemens, Joe Kaeser, decided to keep the contract with the Indian billionaire.

Adani celebrated her victory: she had repeatedly shown that she would not be intimidated. It is about providing affordable energy to developing countries to help them escape poverty, he said.

The first coal from the Australian mine was shipped a few months ago. About ten million tonnes are to be exported annually – despite ongoing protests. However, Adani is no longer the absolute enemy of climate activists: he is currently undergoing a massive restructuring of his company towards renewable energy sources.

According to his own information, Adani Green Energy is already the largest solar energy company in the world and wants to supply about 45 gigawatts of green electricity by 2030. That alone would meet ten percent of India’s total target. .

Close ties with Prime Minister Narendra Modi

Last year, Adani announced its intention to invest $ 50 billion to $ 70 billion in green energy over the next ten years. In the stock market, high ambitions are going well: The share price of Adani Green Energy has risen by 8000% in the last five years. With a market capitalization of $ 50 billion, the company is now the most valuable in Adani’s corporate empire.

It is particularly interested in the production of green hydrogen – an energy carrier that is considered vital for the neutralization of the chemical and steel industries in terms of CO2, for example. Thus, Adani is in the same line with India’s second richest man, Mukesh Ambani, who recently held the title of richest Asian. The Reliance Group leader also plans to invest billions in renewable energy.

The two billionaires are also united by their origins: they are both from Gujarat, the state where Indian Prime Minister Narendra Modi has his roots. Adani and Ambani are both said to owe their financial success in part to their good connections with the head of government. Adani was already considered an ally of Monti when he was head of the Gujarat government. Prior to becoming prime minister, Monti used Anthony’s private jets to fly to campaign rallies.

Adani relies on political support, especially in his infrastructure business. In 2018, for example, it benefited from a government that allowed non-industrial groups to operate airports. Since then, it has won one contract after another in a wave of privatizations and become the market leader in India’s airports within a few months.

In the past, Anthony has always denied allegations that Monti gave him privileged treatment. But he does not hide that he is very happy with the prime minister.