MUMBAI: Adani Group chairman Gautam Adani delivered an inspirational address at a private event in Mumbai on Monday. His speech, spanning personal anecdotes, business insights, and visions for India’s future, captivated the audience, comprising young leaders and entrepreneurs.
In his address, Adani reflected on his upbringing, which he described as a blend of the deserts of Banaskantha and the poles of Ahmedabad.
Adani said, “The deserts teach a lot – that life in its barren form forces us to adapt in our own ways. The scorching heat and the dusty winds of Banaskatha taught me resilience.”
He credited his mother for instilling in him the values of family and his father for demonstrating the power of verbal commitments in business transactions.
Adani said, “During this formative period there were two people who influenced me. My mother, who was the pillar of our household and instrumental in keeping our joint family tightly knit. Her commitment to hold our large family together laid the foundation of my family values and beliefs.”
He added, “And the second was my father who was in the business of forward trading. In those days, the transactions happened verbally, mostly on the telephone, without any written documents, or contracts. At a very young age I saw that these verbal commitments never failed.”
“These experiences from my childhood played a significant part in shaping my beliefs, and resulted in what today are the core values of the Adani group – the Courage to withstand, the Trust in the people, and the Commitment to a larger cause,” he further added.
Adani reminisced about his decision at the age of 16 to move to Mumbai and venture into the diamond business, driven by a desire for independence and a yearning for new opportunities.
Despite facing unexpected turns, including a recall to assist in running a PVC film factory near Ahmedabad, Adani seized the opportunity presented by the liberalization of import policies in the mid-1980s.
Adani said, “Just as I was about to turn 19 and was settling in Mumbai, life took an unexpected turn. I was called back by my elder brother to assist in running a small-scale PVC film factory we had acquired near Ahmedabad. The business was challenging due to the scarcity of raw materials caused by heavy import restrictions.”
The chairman shared moments in the Adani Group’s journey, such as the establishment of a global trading house and the transformation of marshy land in Mundra into a thriving commercial port, spurred by government policies and strategic partnerships.
The landscape of Indian business underwent significant shifts following the elections of 1985, as Prime Minister Rajiv Gandhi initiated liberalization policies, marking the beginning of transformative changes.
Seizing the opportunity despite lacking experience, Gautam Adani swiftly established a trading organization, importing polymers to cater to small-scale industries.
Adani said, “But all this was set to change following the elections in 1985. Shri Rajiv Gandhi had just become the Prime Minister and he initiated the liberalization of import policies. Despite having no experience, I grabbed the opportunity and swiftly established a trading organization and began importing polymers to supply to the needy small-scale industries.”
In 1991, India faced a foreign exchange reserve crisis, with reserves dwindling to less than 10 days’ worth. This sparked widespread panic as the country teetered on the brink of an economic collapse.
In response to this crisis, then Prime Minister P.V. Narasimha Rao and Finance Minister Dr Manmohan Singh unveiled a series of bold economic liberalization policies.
These policies aimed to address the root causes of the crisis and usher in a new era of economic reform.
Key components of these reforms included reducing import tariffs, deregulating industries, opening up the economy to foreign investments, and fostering development through public-private partnerships.
The overarching goal of these reforms was to fundamentally reshape India’s business environment, moving away from the restrictive policies of the past, famously known as the “Licence Raj.”
This term referred to the extensive system of permits and regulations that governed virtually every aspect of economic activity in India, stifling entrepreneurship and hindering economic growth.
Adani said, “Then came the massive foreign exchange reserve crisis of 1991. There was panic as India was down to less than 10 days of foreign exchange. It was during this crisis that Shri P V Narasimha Rao – then the PM, and Dr. Manmohan Singh – then the finance minister announced a series of very bold economic liberalization policies which included a roadmap for reduction of import tariffs, industry deregulation, the opening up to foreign investments, and development of infrastructure through public private partnerships. All of this was to dramatically reshape the business environment and effectively ended the “Licence Raj”.
Adani describes trading as not just a financial endeavour but also a mental battle, highlighting the importance of resilience and self-awareness in navigating the ups and downs of the market.
He emphasizes that every setback provides a valuable lesson, while every success offers newfound wisdom. This mindset has been instrumental in Adani’s approach to business, allowing him to learn from failures and capitalize on opportunities.
Adani said, “Trading is a mental battle – both with the market and with one’s own self. Each loss teaches a lesson. Every gain imparts wisdom. This mantra has always stayed with me.”
Reflecting on the economic reforms of 1985 and 1991, Adani acknowledges their profound impact on India’s business landscape. He observes that many established businesses failed to adapt to the changing market dynamics brought about by these reforms, leading to their eventual decline.
However, Adani and his group recognized the opportunities presented by liberalization and swiftly adapted to the new regulatory environment. This adaptability allowed them to thrive while others faltered, culminating in the decision to take Adani Enterprises public in 1994.
“I look back at the series of events of 1985 and 1991 as the first wave of transformation that left its imprint across the country’s business landscape. I witnessed many of the existing businesses houses that had become very large entities since independence simply failed to recognize the market shifts as a result of the policy changes. They just failed to evolve and thereby became weak or irrelevant over the years that followed,” said Adani.
Adani also recounts a pivotal moment in 1995 when the Gujarat government announced an industrial development plan focused on ports through public-private partnerships.
Seeing this as a significant opportunity, Adani seized the moment, viewing it as his third major breakthrough.
Adani said, “What I can confidently state today is that we are an outcome of the economic reforms of 1985 and 1991. Where others failed to transform, we saw the opportunity and adapted swiftly to the new liberalization regulations and guidelines. In 1994, we decided it was time to go public, and thus Adani Exports, now known as Adani Enterprises, launched its IPO.”
This strategic move propelled the Adani Group into a new phase of growth, setting them on a path to become a major player in the port and logistics industry.
Adani emphasised, “And the opportunity came about in 1995 when the BJP Govt in its Gujarat election manifesto announced its port led industrial development plan through the public private partnership mode. I see this as my third major break in 1995 – and shifted us to a new orbit. I was 31.”
In this excerpt, Gautam Adani reflects on moments in the growth of the Adani Group, particularly focusing on the transformative impact of strategic decisions and the broader economic landscape of India.
Adani discussed the fortuitous opportunity that arose when the Gujarat government selected the Adani Group to develop a commercial port in Mundra under a Public-Private Partnership (PPP) agreement.
This decision turned out to be a blessing in disguise as it provided the Adani Group with a significant platform for growth and expansion.
Adani said, “And this turned out to be a blessing in disguise when, under the PPP agreement, we were selected by the Gujarat government to develop a full-fledged commercial port in Mundra.”
Following the port development, another opportunity emerged when the Gujarat government announced the Special Economic Zone (SEZ) policy in 2005.
This policy allowed the Adani Group to leverage the 40,000 acres of marshy land surrounding the Mundra port, which was previously considered of little value.
Through strategic planning and execution, this land was transformed into a valuable asset, contributing to the Adani Group’s rapid growth and diversification.
“Thereafter, the next opportunity followed when the Gujarat Government announced the SEZ policy in 2005. The 40,000 acres of marshy land around Mundra port that was considered of very little value, had now become a priceless asset. Mundra taught me that – What you dream, you create and What you think, you become,” said Gautam Adani.
Adani emphasizes the lessons learned from the Mundra project, highlighting the importance of dreaming big and translating those dreams into reality.
He underscores the principle that what one thinks and dreams, one can ultimately achieve. This mindset has been instrumental in guiding the Adani Group’s trajectory and facilitating its journey of hypergrowth across various sectors.
Adani said, “It is our adoption of this principle that has led to the outcome of the Adani Group being able to continue its journey of hyper growth – and today we are the world’s second largest solar power company, we are the largest airport operator with 25 per cent of pax traffic and 40 per cent of air cargo, we are the largest Ports and Logistics company with 30 per cent of national market share, we are India’s largest integrated energy player.”
He added, “Our presence spans across generation, transmission, and distribution, LNG and LPG terminals, city gas and piped gas distribution, we are the country’s second largest cement manufacturer and we have declared our path forward in new sectors including metals, petchem, aerospace and defence, data centres, super apps, and industrial clouds.”
Furthermore, Adani outlines the impressive accomplishments of the Adani Group, positioning it as a powerhouse in the Indian business landscape.
From being the world’s second-largest solar power company to dominating sectors such as airports, ports, logistics, energy, and cement manufacturing, the Adani Group has established itself as a key player in India’s economic development.
Adani stated, “Our journey is only just starting – a journey built on one of the most exciting platforms that has ever existed – a platform called India. If the last three decades since the 1990s have laid the foundation for India to become the world’s fifth-largest economy, the journey towards 2050 will be even more transformative and disruptive. While the past three decades were about opening India to the world, the upcoming three decades will see the world opening up to India.”
Looking ahead, Adani paints a bold vision for India’s future economic growth, anticipating significant advancements in GDP and positioning India as a global economic powerhouse by 2050.
“It took us 58 years to reach our first trillion dollars of GDP, 12 years to achieve the next, and just 5 years for the third trillion. This acceleration is unstoppable, and I anticipate that within the next decade, India will begin adding a trillion dollars to its GDP every 18 months, setting us on the path to becoming a 25 to 30 trillion-dollar economy by 2050,” said Adani.
He highlights the role of the digital age in democratizing opportunities and fostering exponential growth, while also emphasizing the importance of resilience, adaptability, and humility in navigating challenges and maintaining success.
Adani said, “The digital age has democratized the playing field. It has thrown open opportunities to a far greater number of companies. An interesting statistic is that in the 1990s, India had just two billionaires. Today, the number is 167.”
In this excerpt, Gautam Adani reflects on the dynamics of the contemporary business landscape, emphasizing the importance of resilience, adaptability, and strategic differentiation in navigating challenges and achieving success.
Adani begins by highlighting the era of exponential growth facilitated by the digital revolution.
He points out that this transformative period has led to the emergence of new disruptive tech billionaires who have capitalized on the opportunities presented by technological advancements.
Adani said, “This is the age of exponential growth. And the most striking manifestation of this digital revolution is the emergence of new disruptive tech billionaires.”
He then delves into the concept of resilience, asserting that while setbacks and failures are inevitable in any endeavour, they also provide valuable lessons and opportunities for growth.
Adani underscores the importance of resilience as a crucial attribute in overcoming obstacles and achieving long-term success, emphasizing that one’s mindset plays a pivotal role in this process.
“Every fall comes with its pains, but every rise comes with its gains. This gain is called resilience. And in the game of resilience your mind will be both – the battleground and the weapon. While simplicity may be the goal, it is the ability to manage complexity that will differentiate you and make you the ones that can navigate the deep waters as against those that remain on the shallow shores,” stated Adani.
Adani then shifts focus to the notion of managing complexity in a rapidly evolving business environment.
While simplicity may be an appealing goal, he argues that the ability to effectively navigate complexity is what sets successful individuals and organizations apart.
Adani suggests that those who can embrace complexity and navigate deep waters will ultimately outperform their counterparts who remain on the shallow shores of familiarity and comfort.
Furthermore, Adani discusses the importance of recognizing the limitations of conventional knowledge and models.
He advises against relying solely on “bookish knowledge” or Western-centric paradigms, suggesting that true strategic differentiation requires a broader perspective and a willingness to challenge conventional wisdom.
Adani said, “The crux of strategic differentiation often lies in recognizing the limitations of bookish knowledge and western centric models. While it is important to source ideas from books and literature, keep in mind that these are after all opinions of brilliant story tellers with great ability to influence.”
Adani emphasizes the importance of cultivating inner strength and conviction, particularly in the face of adversity or opposition.
Adani said, “It is about cultivating an inner strength that allows you to remain strong in your convictions, even in the face of severe opposition.”
Adani’s insights underscore the importance of adaptability, resilience, and strategic thinking in navigating the complexities of the modern business landscape.
By embracing change, challenging conventional wisdom, and remaining steadfast in their convictions, individuals and organizations can position themselves for sustained success and growth.
Adani said, “The most difficult of all — stay humble. Your own success will push back on your humility. But humility is the biggest differentiator you can build. Humility is not thinking less of yourself – it is thinking of yourself a little less.” (ANI)