Adani Beats Tata To Become India’s Most Valued Business Group: Adds Rs 57,000 Crore Every Month

The Adani Group, led by the world’s second richest man Gautam Adani, has become India’s most valued business house with a total market valuation of Rs 20.74 lakh crore (about $260 billion).

Massive growth in less than 3 years

The seven listed Adani Group companies have seen huge highs In less than three years, with a market capitalization (m-cap) surge by about Rs 18. 7 lakh crore (nearly $234 billion).

From a market cap of Rs 2 lakh crore as of end-2019, the Adani group has since then added an average Rs 56,700 crore every month to its shareholder wealth.

Net addition to m-cap

They now have an edge over the Tata Group (Rs 20.7 lakh crore) in second place.

Compared to Adani Group’s Rs 18.7 lakh crore addition to its m-cap in less than three years, Tata Group gained nearly Rs 9 lakh crore as m-cap during the same period.

Reliance Industries added Rs 7. 4 lakh crore.

Others on the list

In terms of market valuation, the Mukesh Ambani-led Reliance group commands a total capitalisation of Rs 17. 1 lakh crore, taking the third position.

Mortgage lender HDFC was ranked fourth with Rs 14. 3 lakh crore, followed by Bajaj group, which holds Rs 9. 2 lakh crore in m-cap.

How it began

The Adani Group’s businesses cover nearly everything, trading, natural gas, power generation, cements, real estate and financial services.

It had humble beginnings, starting three decades back In 1988.

Adani set up Adani Enterprises (then Adani Exports) to start a commodities trading business.

Soon the Mundra port came up for captive export-import operations

How it’s going

In the last two decades, the Adani Group has made its presence felt in several new businesses such as thermal and renewable power generation projects, several ports along India’s coastline and power transmission lines across the country.

It has also acquired two of the largest cement companies in India.

The Group’s coal mining operations in Australia are very unpopular and are strongly protested in the country.

Golden goose for investors

However, there is no stopping this bulldozer.

It has also made huge investment commitments in the renewable energy space.

Its rapid ascent has attracted investments from top global entities like Warburg Pincus and Total Energies.