The name Adani has dominated the headlines in recent months, particularly in relation to the takeover of Jomo Kenyatta International Airport (JKIA) by the Indian conglomerate, Adani Group. This development has sparked curiosity about the man behind the company, Gautam Adani, who not only controls one of the largest business empires in India but also holds the title of Asia’s richest person. While his company prepares to take control of JKIA, many are asking, who exactly is Gautam Adani?
Born on June 24, 1962, in Gujarat, India, Gautam Adani’s journey to immense wealth and power began with humble beginnings. He entered Mumbai’s diamond industry after dropping out of college, which became his first step on the long road to success. Eventually, he returned to Gujarat and began importing polyvinyl chloride (PVC) for his brother’s plastics business. This initial venture opened the door to international trade and set the foundation for what would become the Adani Group.
In 1988, Gautam, along with his brothers Vinod and Rajesh, founded Adani Enterprises, focusing on the import and export of commodities. By 1994, the company had secured a contract to develop a harbor at Mundra Port in Gujarat. Rather than just handling cargo, Adani saw an opportunity to create a commercial port, and through negotiations with over 500 landowners, the Mundra Port became the largest in India.
From there, Adani’s empire expanded to encompass multiple sectors, including power generation, coal mining, green energy, and airports. Today, the Adani Group consists of ten publicly traded companies with a market value exceeding $242.73 billion as of August 2022.
In July 2024, rumors began swirling about a potential deal that would see Adani Group lease JKIA, Kenya’s largest airport, for 30 years. Despite initial speculation, the deal has been confirmed, sparking widespread discussions. Under the terms:
1. Adani Group will control JKIA and manage all of Kenya’s airports for the next three decades.
2. The deal is structured under a build, operate, and transfer model, which typically sees the operator manage infrastructure while developing it. However, in this case, Adani will not build new runways, only refurbish existing terminals and construct taxiways.
3. Adani will receive full control over both the airside (runways, taxiways, and aprons) and landside (terminals, parking, and real estate) operations of the airports.
4. Adani Group will be entitled to a fixed 18% concession fee, starting at $47 million (KES 6 billion), which will increase by 10% every five years.
5. For 30 years, Adani Group will be the sole authority hiring airport staff, with plans to downsize the current workforce and bring in labor from India.
6. Adani will also enjoy 10 years of tax-free operation, while Kenya commits not to build or renovate competing airports for the duration of the contract.
Gautam Adani’s rise to the top of Asia’s wealth rankings has not been without its fair share of controversies:
1. In 2012, an Indian government auditor accused Modi of supplying low-cost fuel from a Gujarat state-run gas company to Adani and other business figures.
2. In 2018, the Adani Group won rights to operate six privatized airports in India, despite lacking experience, raising concerns about favoritism due to its relationship with Modi’s government. They include Mangalore, Lucknow, Ahmedabad, Guwahati, Jaipur and Thiruvananthapuram. The group currently runs 8 airports in India, after it bought Mumbai and the future Navi Mumbai Airport from the GVK Group in 2021.
3. In August 2022, the Adani Group acquired a 29% stake in NDTV without the network’s consent, leading to fears about the potential loss of media independence and a pro-Modi bias.
4. In January 2023, Hindenburg Research accused the Adani Group of stock manipulation, claiming the company fraudulently inflated its stock value, causing a $45 billion loss in market capitalization.
5. In August 2023, the Organized Crime and Corruption Reporting Project (OCCRP) alleged that Adani used front companies and individuals to manipulate stock prices, violating Indian securities laws.
6. From 2012-2022, the Stop Adani campaign in Australia sought to halt the construction of the Carmichael coal mine due to environmental concerns, organizing protests and pressuring the government to block the project.
7. Gautam Adani and Mukesh Ambani have further been accused of fostering crony capitalism in India by leveraging their close ties with Prime Minister Modi to secure government contracts and silence critics. For instance, in 2018, when the Indian government decided to privatize six airports, the Adani Group, despite having no prior experience in airport management, somehow won the rights to operate all six.