Mukesh Ambani, the chairman of Reliance Industries, and Gautam Adani, the head of the Adani Group, have both fallen out of Bloomberg’s exclusive $100 billion club this year due to various business challenges, according to a recent Bloomberg report.
Despite the setbacks of some of India’s richest individuals, many others have seen their fortunes grow, with the 20 wealthiest individuals adding a total of $67.3 billion to their wealth since the start of the year. Notably, tech tycoon Shiv Nadar saw a significant increase of $10.8 billion, while Savitri Jindal’s family, which controls the Jindal Group, added $10.1 billion to their fortune.
Challenges Faced by Ambani and Adani
Ambani and Adani have been confronting difficulties that have impacted both their business empires and personal wealth. Ambani’s energy and retail sectors have faced challenges, with investor concerns about rising debt and its effect on performance. Meanwhile, Adani’s empire has been rocked by a US Department of Justice investigation, which could limit access to funding and hinder the ability to secure new contracts.
Ambani, who was Asia’s wealthiest person, experienced a decline in his wealth, though the drop wasn’t as severe. His fortune peaked at $120.8 billion in July, partly fueled by a high-profile family wedding. However, Reliance has faced setbacks, including weaker earnings from its energy division and slower consumer demand in retail. As of December 13, Ambani’s net worth stood at $96.7 billion.
Both Ambani and Adani have now fallen below the $100 billion threshold, dropping out of Bloomberg’s ‘centibillionaire’ list.
Adani, meanwhile, has faced heightened international scrutiny following a November investigation by US authorities over alleged bribery, adding to the controversy sparked by the Hindenburg Research report last year, which accused his group of fraudulent practices. Adani has firmly denied the allegations and continues to defend his company, emphasizing a commitment to regulatory compliance and claiming that every challenge makes the company stronger.
As 2024 approaches, these ongoing allegations are expected to continue affecting the stock prices of the Adani Group. Adani’s wealth peaked at $122.3 billion in June after efforts to strengthen the company’s financial standing in the aftermath of the Hindenburg report. However, his net worth has since dropped to $82.1 billion, according to Bloomberg’s index.
“Those gains have now evaporated after the US allegations that he oversaw bribes to Indian government officials, and he’s now worth $82.1 billion,” Bloomberg reported.