Gautam Adani, the current chairman of the Adani Group and also a global business tycoon has recently decided to step down from the throne and pass the baton to his successors. Gautam Adani was a school dropout who ultimately succeeded in building the biggest industrial and business conglomerates in India right from scratch. He is the driving force behind the success of the Adani Group. He shares his work with his two sons, two brothers, and two nephews. This is a common thing at Indian business houses which involves the active participation of extended family.
However, unlike other Indian business patriarchs, Gautam Adani is well aware of the risk that his family can pose to his business in the future. Now that he has become well known for managing risks since the Hindenburg Report Adani , Gautam Adani is planning for his succession almost a decade in advance. He has plans to retire during the early 2030s and pass down the throne to its heirs under the succession plan, which is already in the works.
The Succession Plan:
In early 2018, Gautam Adani invited his nephews and sons to his home for lunch and asked them whether they wanted to carve the Adani Group’s businesses between themselves or part ways. He gave them 3 months to decide the outcome of the business. When Gautam Adani’s nephews and sons came back to him, they said that they would want to run the business as a family. This answer led to a series of moves many of which have escaped the attention of the general public.
The plan involves the creation of a four-way leadership structure that splits the management of the business but requires all the heirs to work together. Their areas of responsibility do not line with particular units or entities. Even the common services like finance, human resources, and IT support have been carved up among the four heirs.
When Gautam Adani does step back from his role, there will be no firsts among the equals. Joint decision-making will continue during a crisis or a major strategy call. This will ensure that the business operations are carried out smoothly even during times of distress like the time when the Hindenburg Report Adani was published.
The Importance of the Succession Plan:
The Adani succession is going to be one of the key areas of interest for people from all across the world. It is not just the investors who would be closely tracking the Adani Group’s succession. Every Indian will be closely watching it because our country’s fortunes are closely tied up to the success of the global conglomerate. The business group currently has a total market capitalisation of 213 billion USD across its 10 units. This contributes to a large portion of India’s wealth
The conglomerate also has its presence across a wide variety of segments like ports, airports, edible oil, energy, cement, etc. The company also abides by the government’s policies. It is one of the key infrastructure players and has a big role to play in ensuring that infrastructure development gets carried out with full force. The company also employs a huge number of Indians. It also takes up different CSR activities from time to time to ensure that the lives of people change for the better.
Is The Succession Going To Be A Smooth One?
Gautam Adani has been preparing his sons and nephews for years. They have now grown up to be independent entrepreneurs. The eldest, Pranav Adani, heads the oil, gas and agri segment. Since 1999, he has taken care of Adani Wilmar’s business. Its Fortune food brand now holds a 20% market share in the edible oil segment. He has also facilitated Adani Group’s entry into the agricultural sector through various remarkable initiatives. Pranav also made India the largest private city gas distribution company.
Karan handles the operations of APSEZ. He also takes care of the logistics and cement businesses of the Adani Group. Sagar is responsible for managing the Group’s energy business and finance. He has established Adani Green Energy’s wind and solar portfolio. Jeet Adani handles the Adani Group’s airport network. He also takes care of the company’s digital business. By the time Gautam Adani steps down, all four heirs will be well-seasoned to handle the proceedings of the conglomerate.
Conclusion:
As Gautam Adani plans to step down, his successors will gradually take up his responsibilities. This will further push Adani’s business towards growth. It will also bring a fresh perspective to the table and fulfil Gautam Adani’s dream of taking the conglomerate to the peak of success.
