History of Adani Group

History of Adani Group

One of the biggest multinational conglomerate in India today, the history of Adani Group is as interesting as its growth and expansion. Founded 36 years ago in 1988 as a commodity trading company by a diamond sorter named Gautam Adani, the group now has diverse business portfolio – Mining, Electric Power, Port Management, Renewable Energy, Oil & Gas, Airport Operations, Food Processing, Infrastructure and Logistics. In this article, we shall share the timeline of Adani Group and its journey from starting with Rs. 5 lakh capital in 1988 to becoming a Rs. 3.09 lakh revenue group of companies in 2024.

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The Early Days – The History of Adani Group
In 1978, the founder and chairman of Adani Group, Gautam Adani moved from Ahmedabad to Mumbai to work as a diamond sorter for Mahendra Brothers. After 3 years in 1981, Adani moved back again to Ahmedabad when his brother Mahasukhbhai Adani bought a plastics unit in the city, and invited Gautam to manage it. Next, he began importing primary polymers for small-scale industries in 1985. 

3 years later in 1988, Gautam Adani established Adani Exports, now known as Adani Enterprises, the holding company of the Adani Group. Initially, the company started as a commodity trading company that dealt in agricultural and power commodities

The Growth Timeline of Adani Group: From 1988 to 2024

1988: Gautam Adani establishes Adani Exports as a partnership firm with a capital of Rs 5 lakh, which is now known as Adani Enterprises, the holding company of the Adani Group

1990: The company develops its own port in Mundra to provide a base for its trading operations 

1991: The company expands into trading metals, textiles, and agro products 

1995: The company undertakes port development and Construction in Mundra

1998: The Adani Group builds India's first private port, Mundra Port, in Gujarat. This is the year that also saw the birth of Adani Power.

1999: The company starts coal trading 

2001: The Adani Group enters the agribusiness sector with the establishment of Adani Wilmar Limited 

2002: The Company now handles 4 Mt of cargo at Mundra, which also becomes the largest private port in India. It is the year that Adani Group goes public.

2005: The company becomes India’s first MDO – Mine Development Operator

2006: The Adani Group establishes a SEZ. The same year, the company also enters the power generation business and becomes the largest importer of coal in India with 11 Mt of coal handling. Adani Shipping was also incorporated this year.

2008: Adani Group starts expanding. The group acquires Bunyu Mines to start mining in Indonesia with $1.65 billion investment. This became the starting point of Adani’s coal mining expansion outside India. The Adani mines in the Indonesian Island of Bunyu has a resource base od 269 MMT.

2009: The Adani Group launches Adani Power, starts generating 330MW of thermal power. It also builds an edible oil refining unit with capacity of 2.2 Mt per annum. In the same year, it acquires Abbot Point Port in Australia.

2010: Adani Enterprises bids and successfully acquires Carmichael coal mine in Queensland for $2.72 billion. The same year, Adani Group also won the Orissa mine rights - making Gautam Adani, the undisputed coal baron of India.

2011: The Adani group commissioned India's largest solar power plant with a capacity 40 MW. Besides, the group also achieved 3,960 MW capacity. 

2012: The group also shifted its focus on three more business clusters – Energy, resources, and logistics.

2014: Adani Power became the largest private power producer in India, and also India’s largest private thermal producer. In the same year, Adani Ports also acquired Dhamra Port for ₹5,500 crore. It was earlier a 50:50 joint venture between L&T and Tata Steel. 

2015: Adani Renewable Energy Park signed a pact with the Rajasthan Government for a 50:50 joint venture to set up India's largest solar park with a capacity of 10,000 MW. 

2016: Adani Aero Defence signed a pact with the Israeli arms manufacturer, Elbit-ISTAR, and Alpha Design Technologies to work in the field of Unmanned Aircraft Systems (UAS) in India. The company also secured approval from the Government of Gujarat to begin work on building a solar power equipment plant. In the same year, the Group also inaugurated a 648 MW single-location solar power plant. It was the world's largest solar power plant at the time it was set up.

2017: The Group acquired the power arm of Reliance Infrastructure for ₹18,800 crore 

2020: Adani obtained a majority stake in Mumbai and Navi Mumbai airports after entering a debt acquisition agreement with GVK Group. Through a concession agreement with the Airports Authority of India, Adani Group also obtained a 50-year lease on Ahmedabad, Guwahati, Jaipur, Lucknow, Mangalore and Thiruvananthapuram airports.

2021: Adani Green Energy acquired SB Energy, a joint venture of SoftBank Group and Bharti Enterprises, for US$3.5 billion. Adani Digital Labs, a wholly-owned subsidiary was also incorporated to launch an Adani digital platform all the Adani consumers. Adani Enterprises also won the road contract to build Ganga Expressway in the state of Uttar Pradesh. 

2022:  The Adani Group acquired Ambuja Cements and ACC for $10.5 billion. The same year, Gautam Adani became Asia's richest person, by beating Mukesh Ambani. Adani Digital Labs launched Adani One and AMG Media Networks, a wholly-owned media and publishing subsidiary of Adani Enterprises was also incorporated this year. 

2023: It is the year when Adani group acquired ACC, Ambuja Cement, and NDTV - increasing the group's overall profits. It was 2023 when Hindenburg Research, a short-selling research firm, released a report alleging stock manipulation, accounting fraud, and improper use of tax havens by the Adani Group. The report caused a sell-off of investments in the group, resulting in a loss of over $50 billion in stock market value.

History of Adani Group: How the Group Expanded into Many Sectors and Industries Since 1988
 

• Commodity trading: The group started as a commodity trading business that exported and traded agricultural products, coal, and other commodities. 
• Infrastructure: In the 1990s, the group entered the infrastructure sector by bidding for the development of Mundra Port in Gujarat. Mundra Port is now India's largest private port. 
• Energy: The group entered the power generation sector in the early 2000s and became India's largest private thermal power producer in 2014. 
• Renewable energy: The group recognized the importance of clean energy and began developing solar and wind power projects. In 2015, the group signed a joint venture with the Rajasthan Government to set up India's largest solar park. 
• Mining and resources: The group holds a large portfolio of coal mines in India and abroad. 
• City gas distribution: The group is expanding its city gas distribution network across India. 
• Airports: The group acquired management rights for six airports in India. 
• Media and publishing: The group incorporated AMG Media Networks in April 2022, which acquired stakes in Quintillion Business Media Ltd and NDTV. 

The Adani Group has also expanded its operations into Africa, Australia, and Indonesia.

Adani Group Companies and Subsidiaries

History of Controversies of Adani Group

• The Adani Group has been involved in several controversies, including: 
• Allegations of stock manipulation 
• Allegations of accounting irregularities 
• Allegations of exporting military drones to Israel 
• Allegations of political corruption 
• Allegations of cronyism 
• Allegations of tax evasion 
• Allegations of environmental damage 
• Allegations of suing journalists 
• A report from Hindenburg Research that claimed the group's listed companies were overvalued and highly leveraged

In Summary

Overall, the Adani Group has grown to become one of the major player in India’s economy over the years since 1993. With more than 10 subsidiaries in various sectors, the Adani Group has been expanding its network across various domains worldwide. However, if you are an investor, it is important that while you know the history of Adani Group, you also conduct a proper research and consider risk tolerance while investing in any Adani Group of companies.