The richest throne in Asia changes hands

 The richest throne in Asia changes hands

Gautam Adani - an Indian billionaire who owns a business empire from ports, mining to green fuel - has just replaced Mukesh Ambani.

According to the Bloomberg Billionaires Index, the 59-year-old billionaire's fortune touched $88.5 billion on February 7, surpassing fellow countryman Ambani with $87.9 billion. With a fortune of nearly 12 billion USD since the beginning of the year, Adani is also the world's best-earning billionaire this year.

Adani made its fortunes from coal and is actively expanding beyond fossil fuels. He has encroached on renewable energy, airports, data centers and defense contractors. These are priority areas considered by Prime Minister of India, Narenda Modi, to be important for long-term economic construction and development.

Gautam Adani - Chairman and Founder of Adani Group. Photo: Reuters

Gautam Adani - Chairman and Founder of Adani Group. Photo: Reuters

"Adani Group has discovered and entered all these areas at the right time. Foreign capital is also pouring into these areas," said Deepak Jasani, retail research director at HDFC Securities. These are all capital-intensive areas and the company has not had much difficulty in raising capital for expansion."

Some shares of Adani Group have gained more than 600% in the past two years, thanks to his bets on green energy and infrastructure. These moves closely follow Mr. Modi's plan to revive the economy and meet the 2070 carbon emissions target.

Shares of Adani Green and Adani Total Gas are up more than 1,000% since the beginning of 2020. Adani Enterprises is up more than 730%. Adani Transmission increased by more than 500%. Adani Ports is up 95%. Meanwhile, India's S&P BSE Sensex index is only up 40%.

Adani dropped out of college and tried his luck in the diamond industry in Mumbai in the early 1980s. Later, he returned to his hometown in Gujarat to help his brother run a plastic company. In 1988, he founded Adani Enterprises.

Adani has committed to invest $70 billion by 2030 to help make it the world's largest producer of renewable energy. Last year, both Total and Warburd Pincus invested in Adani's businesses. In the airport segment, in just three years, Adani has gained control of seven airports and nearly a quarter of India's air traffic.

Sanjiv Bhasin, director of securities brokerage IIFL, said some of the companies under Adani Group were "almost monopolistic". Besides, thanks to the close sales of India's goals of industrialization and infrastructure construction, "this group is benefiting greatly".