How Crucial was the Role of Adani Green in Making Gautam Adani Asia’s Richest Man?

Billionaire Gautam Adani has become Asia’s richest person. The push towards green energy has boosted the conglomerate’s net worth to USD 88.5 billion, overtaking fellow countryman, Mukesh Ambani, to enter the top 10 world’s richest people. The business tycoon has surpassed Meta’s founder, Mark Zuckerberg, whose net worth slipped to USD 29 billion last week.

On the back of the controversial Carmichael project in Australia, the Adani Group decided to increase its share of green investments. In the last two years, the total cap of all Adani group companies plunged from Rs 2 lakh crore to Rs 11.3 lakh crore.

The stock price and the market value of some of the companies of Adani Group have risen by over seven times in this period as he positioned them to operate in areas like green energy, airport and ports to meet the government’s aim of making India a USD 5 trillion economy by 2024.

Read Also – Adani Green Energy raises $750 million for under-construction pipeline

India plans to reach a target of 500 GW of non-fossil fuel capacity by 2030. To achieve this, it will require to reduce dependency on fossil-fuels. “Investment requirement remains large at USD 450 billion – USD 500 billion to achieve the renewable energy capacity targets by 2030,” said Investment Information and Credit Rating Agency of India (ICRA).

In October, Adani Green Energy finished its acquisition of Soft Bank’s SB Energy at USD 3.5 billion. It was one of the largest deals in India’s renewable sector. Adani also signed an agreement with the Solar Energy Corporation of India to supply 4,667 MW of power.

The share price of Adani Green Energy has doubled in this period, making it the most valuable asset of the conglomerate. By 2030, the group is aiming to plough USD 70 billion into green energy projects in order to become the largest renewable-energy producer globally.

Adani Wilmar, a 50:50 joint venture between Adani Group and the global edible oils major, Wilmar, has also made a promising stride, adding nearly Rs 34,500 crore worth of market value. Presently, Adani Wilmar is a market leader in producing Soya bean, palm oil and mustard. The annual sales of the FMCG is estimated to be nearly 5 lakh crore.

Adani has been witnessing a steady rise in his net worth since the onset of the pandemic. The push into green energy has paid off handsomely in past one year doubling his net worth. On Friday, Adani Green Energy Ltd (AGEL) raised Rs 612.30 crore through its three subsidiaries in their maiden domestic bond issuance.

Related Article – Adani Green Energy arm in Gujarat commissions 150-MW wind power plant