Adani: Every attack makes us stronger; every obstacle a stepping stone

“Every attack makes us stronger, every obstacle becomes a stepping stone for a more resilient Adani Group”, the conglomerate's chairman Gautam Adani said on November 30, breaking his silence on the US indictment against the conglomerate. Speaking at the 51st Gem & Jewellery Awards in Jaipur, he said, “This is not the first time we faced such challenges.

Adani insisted that no one from his group was named in the FCPA or faced charges for “conspiration to obstruct justice”.

“As most of you would have read less than 2 weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy. Despite a lot of the vested reporting, no one from the Adani side has been charged with any violation of the FCPA or any conspiracy to obstruct justice. In today’s world, negativity spreads faster than facts. As we work through the legal process, I want to reconfirm our absolute commitment to world-class regulatory compliance...” said India's richest man.

The conglomerate had already denied the charges under the indictment in the US as “baseless” and vowed to seek “all possible legal recourse”.

"In January last year, just as we were getting ready to launch our Follow-on Public Offering. We faced a short-selling attack initiated from abroad. This was not a typical financial strike; it was a double hit-targeting our financial stability and pulling us into a political controversy. All of this was further amplified by certain media with vested interests. But even in the face of such adversity, our commitment to our principles remained strong. After successfully raising Rs 20,000 crore from India’s largest-ever FPO, we made the extraordinary decision to return the proceeds," Adani said, underscoring Hindenburg Research's hit job on the group last year, without naming the short seller.

Record low debt-to-EBITDA ratio

The group further illustrated its resilience by securing capital from various international sources and actively lowering our debt to EBITDA ratio to below 2.5 times, a benchmark that stands unparalleled in the global infrastructure sector, India's richest businessman stated. 

Further, he said, the conglomerate's record-breaking financial performance in the same year highlighted its dedication to operational excellence. Not a single credit rating agency, whether Indian or foreign, downgraded our status, he noted, asserting that the affirmation of the group's actions by the Supreme Court of India validated its strategy.

Regarding the Dharavi redevelopment initiative, the Adani group chief said that this project transcended mere slum redevelopment, as it was fundamentally about restoring dignity and creating opportunities to transform the lives of one million residents of Asia's largest slum area.

Adani: From a nobody to a somebody

Recalling his struggle as an entrepreneur in the formative years of his profession, the tycoon said,  “Diamond trading was my first entry point in my journey to become an entrepreneur. In the year 1978, at the age of 16, I left my school, left my home in Ahmedabad and took a one-way ticket to Mumbai. I had no idea what I would do but I was clear that I wanted to be an entrepreneur and I believed Mumbai was the city of opportunities that would give me this chance. I got my first opportunity at Mahendra Brothers where I learned the art of diamond assorting. Even today I recall the joy of closing my first deal. It was a transaction with a Japanese buyer and I got a commission of Rs 10,000. That day marked the start of a journey that would shape the way I would live my life as an entrepreneur. What I learned as a teenager was that trading does not come with a safety net. It is a discipline where you must find the courage to fly without any protective nets...” 

The chairman of Adani stated that India represents the jewel in the global crown of the cut and polished diamond industry, commanding a 26.5% market share, while silver jewellery accounts for 30%. However, he emphasized that the recent 14% drop in exports is not merely a statistic; it serves as a critical wake-up call.

“The rise of lab-grown diamonds, the demand for transparency and ethical practices, shifting consumer priorities and the digital wave are not just disrupting the status quo. They are creating a new blueprint necessary for success. This is therefore our moment to lead,” the magnate added.