Indian Billionaires Ambani and Adani drop out of $100 billion club; Read

By Vinaykumar Patil | First Published Dec 16, 2024, 2:24 PM IST

India's richest billionaires, Mukesh Ambani and Gautam Adani, have seen their net worth drop below $100 billion due to challenges in energy, retail, and regulatory issues. They also face additional hurdles, including US tariffs and political uncertainties, impacting their businesses in the coming year.

India’s two wealthiest individuals, Mukesh Ambani and Gautam Adani, have recently seen their fortunes dip below the $100 billion mark, according to reports from Bloomberg. Both business tycoons, who have long been at the forefront of India's corporate landscape, are facing several challenges affecting both their personal wealth and their business ventures.

Mukesh Ambani, the chairman of Reliance Industries, and Gautam Adani, who leads the Adani Group, have both experienced significant setbacks in recent months. Ambani’s companies, particularly in the energy and retail sectors, have struggled, with investors expressing concerns about the mounting debt levels. Meanwhile, Adani’s business empire has been under intense scrutiny following a US Department of Justice investigation, which could impact its ability to secure funding and contracts.

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Adani faced additional hurdles in November when US prosecutors launched an investigation into alleged bribery, drawing unwanted attention to his operations. This follows last year’s allegations by Hindenburg Research, which accused the Adani Group of fraudulent practices. Adani has firmly denied the allegations and remains determined to fight them. Speaking at an event after the US accusations, he stressed the company’s commitment to "world-class regulatory compliance" and claimed that every challenge makes the company "stronger."

Despite his resilience, these ongoing allegations are expected to continue weighing down Adani's market value well into the next year. His wealth, which peaked at $122.3 billion in June, has now fallen to $82.1 billion, according to the Bloomberg Billionaires Index.

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Ambani, Asia’s wealthiest individual, has also seen a sharp reduction in his fortune. His net worth peaked at around $120.8 billion in July, coinciding with his son Anant Ambani’s extravagant wedding celebrations. However, Reliance has faced challenges in the energy sector, with earnings declining, and consumer spending in retail operations slowing down. As of December 13, Ambani’s wealth was recorded at $96.7 billion.

Both Ambani and Adani have now dropped out of the exclusive $100 billion club, as per the Bloomberg Billionaires Index, a list that tracks the world’s wealthiest individuals.

Ambani’s future strategy focuses on bolstering his company’s digital platforms, retail brands, and investments in renewable energy to drive growth. However, sales growth in the retail sector has been slow, and competitors in digital services are gradually eating into market share, particularly in urban areas of India. The entry of Elon Musk’s Starlink into India’s satellite broadband market could also pose a challenge to Jio Platforms, Ambani's telecom arm. Meanwhile, lower demand for products and imports from China are affecting the oil-to-chemicals division.

“Reliance remains a strong wealth creator, and each business holds great value. However, the pressure on the oil business has led to the stock underperforming,” said Kranthi Bathini, an equity market strategist at WealthMills Securities Pvt in Mumbai, as quoted by Bloomberg.

Reliance’s focus on technology is evident in its partnership with Walt Disney Co., which has led to the creation of an $8.5 billion media venture to dominate India’s streaming market. The company has also strengthened its collaboration with Nvidia Corp. to build AI infrastructure in India.

Both Ambani and Adani are expected to face more challenges next year, especially with the uncertainty around US tariffs and possible political changes, including the impact of Donald Trump on the global economy.

"In the short term, there are challenges, particularly with Trump’s tariffs, which could make India's exports less competitive," said V.K. Unni, a professor at the Indian Institute of Management Calcutta.

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Despite these setbacks, India’s wealthiest individuals continue to see growth. The top 20 billionaires in the country have added a combined $67.3 billion to their net worth since the beginning of the year, according to Bloomberg’s wealth index. Tech magnate Shiv Nadar and Savitri Jindal, whose family controls the Jindal Group, have both seen their wealth grow by $10.8 billion and $10.1 billion, respectively.

As Ambani and Adani face significant financial hurdles, their resilience in the business world remains a point of interest for both investors and the broader Indian economy. However, the road ahead for both is likely to be shaped by their ability to adapt to changing market conditions and global challenges.

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