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06-08-2024
Bureau Report + Agencies
NEW DELHI: Adani Group chairman Gautam Adani, 62, plans to step down at the age of 70 and shift control to his sons and their cousins in the early 2030s, he told Bloomberg News in an interview published on Monday.
When Adani retires, his four heirs – sons Karan and Jeet, and their cousins Pranav and Sagar will become equal beneficiaries of the family trust, according to the scions, the report said.
A confidential agreement will dictate the transition of stakes in the conglomerate’s firms to the heirs, the Bloomberg report said, citing people familiar with the matter.
Adani Group did not immediately respond to a Reuters request for comment.
Gautam Adani’s elder son Karan Adani is the managing director of Adani Ports, opens new tab, while his younger son Jeet Adani is the director of Adani Airports, according to the Adani Group website.
Pranav Adani is the director of Adani Enterprises and Sagar Adani is the executive director of Adani Green Energy, opens new tab, the website shows.
Pranav and Karan are the most obvious candidates to eventually take over as chairman, the Bloomberg report said.
“Succession is very, very important for the business sustainability. I left the choice to the second generation as the transition must be organic, gradual and very systematic,” Gautam Adani said.
When Adani does step back, the joint decision-making will continue even in the event of a crisis or a major strategic call, the Adani children told Bloomberg in separate interviews.
The report comes at a time when Adani Enterprises, opens new tab, the flagship firm of the Adani Group, saw its first quarter profit more than double, as the conglomerate expanded its new energy business through more investments in renewable energy.
India’s Adani Enterprises’, opens new tab first-quarter profit more than doubled on Thursday as growth in its new energy division outweighed weakness in its key coal trading segment.
Consolidated net profit rose to 14.55 billion rupees (around $174 million) for the quarter ended June 30, from 6.74 billion rupees a year ago, the company, which is the flagship firm of the Adani Group, said in an exchange filing.
The new energy segment, which comprises of solar manufacturing and wind turbine businesses, posted a 3.6% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to 16.42 billion rupees.
The segment contributes 38% of the company’s total EBITDA, which jumped 48% to 43 billion rupees.
The conglomerate has been expanding its new energy business, through more investments in renewable energy. The division comprises 15% of net revenue and its quarterly performance was supported by a jump in volumes and prices of solar modules.
Overall, revenue from operations rose 12.4% to 254.72 billion rupees.
Meanwhile, the company’s mainstay coal trading business revenue fell 28% to 107.94 billion rupees on lower coal prices.
In May, Adani Enterprises bounced back to levels last seen in January 2023, when a report by US short-seller Hindenburg Research triggered a sell-off in billionaire Gautam Adani’s ports-to-power conglomerate. The Adani Group has denied the allegations.
Additionally, Adani Enterprises approved the demerger of its food business to Adani Wilmar.
