Delhi: The troubles of Gautam Adani and Adani Group are not taking the name of abatement. Adani Group became the country’s largest industrial house in terms of market cap in the stock market, while in just two years, Group Chairman Gautam Adani became the richest person in Asia including India. Adani’s shares were booming and many billionaires around the world washed their hands in the flowing Ganga. But on January 24, a report by American short selling firm Hindenburg Research changed the picture and shook Adani’s empire. The group’s shares have fallen by nearly 60 per cent in the last seven days, Adani Group’s market cap has also declined by over $100 billion. Meanwhile, note that the Adani group also has investments in several foreign companies, including two of the world’s richest families. The good thing is that they are standing by Adani Group during this crisis, but as Adani’s crisis escalates, it will affect global investors as well. Many rich of the world have invested in Adani Group, but now their investment is at risk.
Investors include Malaysia’s richest man and two of the world’s richest families
According to the report, investors in the Adani group include Malaysia’s richest man, a shipping tycoon and two of the world’s richest families. From data center servicing, packaged food to port management, these people have partnered with Adani Group. And on the strength of these partnerships, Adani Group has expanded its business in many areas in recent times. Robert Kuok, Malaysia’s richest man, is one of Adani’s oldest partners and his company Wilmar International owns half of Adani Wilmar. The company, which manufactures oil, sugar and other products under the Fortune brand, has a market value of $6.7 billion. In this company, Wilmar provides food expertise while Adani Group handles the logistics part. But after the Hindenburg report, Wilmar this week insisted that Adani would continue to support the group.
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Who invests in Adani Group?
Retail giant Walmart also has investments in Adani group companies. Walmart is owned by the Walton family, the second richest people in the world. Walmart had bought the Indian e-commerce company Flipkart a few years ago. Later in 2021, Flipkart tied up with Adani Logistics to strengthen its infrastructure. Adani Group is building a data center in Mumbai and plans to lease a part of it to Flipkart. Adani Group had said that this partnership will provide employment to 2500 people. Also EdgeConneX, a Virginia-based data center services company, formed a joint venture with the Adani Group to build 1 GW of data center capacity in India. Meanwhile, the amount to be invested in this has not been disclosed.
Bought Haifa, Israel’s second largest port
Similarly, CMA CGM, the world’s third largest container shipping company, signed an agreement with Adani Group in 2017 to operate a terminal at Mundra port for 15 years. The majority stake in CMA CGM is held by Rodolphe Sade of France and his family. Adani had recently bought Haifa, Israel’s second largest port, when the Hindenburg report came out. Israel’s Gadot Group is its partner in this. Similarly, International Holding Company of Abu Dhabi has invested two billion dollars in companies of Adani Group. IHC is majority-owned by the Royal Group, which is owned by Sheikh Tahnoon, the UAE’s National Security Advisor and part of the world’s richest family.