Industrialist Gautam Adani thinks consumption may take economy to $15 trn level

The story: India's powerful industrialit Gautam Adani has said that consumption by India’s middle class will help create a $15-trillion economy in two

Industrialist Gautam Adani thinks consumption may take economy to $15 trn level

---

• The story: India's powerful industrialit Gautam Adani has said that consumption by India’s middle class will help create a $15-trillion economy in two decades and give businesses opportunity for growth. He also rejected "reckless, irresponsible reporting" about the company’s shareholding in June 2021 that led to a sharp fall in share value. (Fact is today's GDP is worth $2.8 trillion, and to reach $15 trillion, it needs to grow by more than five times overall)
• Five trillion is certain: Adani said that India’s target to be a five-trillion-dollar economy in four years should not be doubted. He thinks it is an inconsequential question. He also feels that the pandemic has taught good lessons to the world and India.

1. Adani said that India will be 5 trillion-dollar economy and then go on to be a 15 trillion-dollar-plus economy over the next two decades.
2. India will emerge as one of the largest global markets, both in terms of consumption size and market cap.
3. There will be bumps along the road, as has been the case in the past, and is expected to be the case in the future. But there is no doubt that the largest middle class that will ever exist, augmented by an increase in the working age and consuming population share, will have a positive impact on India’s growth as demographic dividend kicks in.

• Share price drop: Adani said the group's focus is on creating long-term sustainable value. He said that a few media houses indulged in reckless and irresponsible reporting related to administrative actions of regulators, causing unexpected fluctuations in the market prices of Adani stocks. Some small investors were affected by this "twisted narrative" in which some commentators and journalists seemed to imply that companies have regulatory powers over their shareholders and that companies can compel disclosure.
• Various group firms:

1. Adani Ports and Special Economic Zone (APSEZ) had become an integrated ports and logistics company. In financial Year 2021, APSEZ crossed a landmark after its share of India’s port-based cargo business rose to 25% and the container segment market share grew to 41%. It continued to diversify further, with LNG & LPG business in Mundra added to the portfolio and LNG operations being added in Dhamra. Adani claimed he was running the biggest port company in the world.
2. Adani Green Energy, in 2020, became the largest solar company in the world, following the acquisition of SB Energy’s five-gigawatt portfolio, at an enterprise valuation of about $3.5 billion. He again claimed there was no other company like it anywhere else.
3. Through Adani Enterprises, the group made its move into airports. Today, one of every four passengers in India flies through an Adani airport. He again claimed that no other company anywhere in the world has 25% share of total market.

• I am the king: Adani proudly acclaime that "whatever businesses the group is in – seaports, airports, logistics, natural resources, thermal and renewable power generation, transmission, distribution, data centres, defence, agri and food, real estate, city gas utilities, and several others – all of them are individually high growth businesses but every one of them has adjacencies within themselves as well as new sectors we can move into.”

 

Join PT courses | PT Youtube | PT App | Contribute |  Testimonials