Ambani, Adani Exit the $100 Billion Club Amid Mounting Challenges
Indian billionaires Mukesh Ambani, Chairman of Reliance Industries, and Gautam Adani, founder of the Adani Group, have fallen out of the prestigious $100 billion wealth club, as per the Bloomberg Billionaires Index ( 2024). This downturn follows significant obstacles affecting both their corporate ventures and personal fortunes.
Ambani's energy and retail segments have faltered, raising investor apprehension over the conglomerate's mounting debt. Reports indicate that Ambani's wealth hit its zenith at $120.8 billion in July, coinciding with the opulent $600-million wedding of Anant Ambani and Radhika Merchant. Despite setbacks, India's wealthiest individual is pivoting towards digital platforms, retail innovation, and renewable energy, aiming to rejuvenate growth. However, sluggish sales and dwindling profits in the retail division have tempered expectations.
In contrast, Adani finds himself navigating turbulent regulatory waters. A U.S. Department of Justice investigation recently alleged that Gautam Adani, his nephew Sagar Adani, and AGEL Managing Director Vneet S Jaain were implicated in bribery schemes to secure power supply contracts in India, alongside accusations of misleading U.S. investors. This marks a second major blow to Adani's empire following last year's financial misconduct allegations by Hindenburg Research.
Adani, whose net worth peaked at $122.3 billion in June, has categorically denied the accusations and vowed to contest them. Although he managed to stabilize his finances after the Hindenburg debacle, the latest allegations have once again unsettled investor confidence.
Reliance Industries' stock has declined by 3.43% in 2024, contrasting sharply with an 11.93% surge in the BSE Sensex. Similarly, Adani Group shares have suffered substantial losses following the fresh wave of U.S. allegations, underscoring the challenges these business magnates face in restoring their standing in the global elite.
published by dailybharat
