Succession Is Important For Business Sustainability: Gautam Adani On Retirement Plans

Gautam Adani noted the importance of a well-planned transition for business sustainability saying that he preferred an organic, gradual, and systematic transition

Adani Group encompasses 10 publicly listed entities with a combined market capitalisation of $213 billion.

Source : PTI

Gautam Adani, India's second-richest man, discussed his retirement and business succession plans during an interview with Bloomberg on Monday. At 62 years old, Adani announced his intention to retire at the age of 70. Adani, currently ranked as the second wealthiest individual in India after Mukesh Ambani, established a commodity trading company with his brothers, Vinod and Rajesh Adani. This venture laid the foundation for what would become Adani Group, which has since expanded into various sectors including ports, airports, coal, and power.

Adani Group now encompasses 10 publicly listed entities with a combined market capitalisation of $213 billion. Its diverse portfolio spans energy, ports and logistics, mining and resources, gas, defence and aerospace, and airports.

Talking to Bloomberg News, Gautam Adani noted the importance of a well-planned transition for business sustainability. He said, "Succession is very, very important for business sustainability," adding that he preferred an organic, gradual, and systematic transition.

Adani explained that his sons, Karan and Jeet, along with cousins Pranav and Sagar, want to run the group as a united family even after he steps down. This aligns with the family's values and ensures continuity and stability for Adani Group, he said. In the interview, Gautam Adani expressed confidence in the next generation's ability to lead the conglomerate, saying, "I am happy that all of them are hungry for growth, which is not common in the second generation. They have to work together to build a legacy."

Adani Enterprises refuted these specifics, stating, "Adani has been misquoted about heirs and equal beneficial interest in the family trust. He had mentioned the involvement of his two sons and two nephews in various businesses of the group."

The company also addressed recent fluctuations in its share price, highlighting that these movements are market-driven and beyond the control or knowledge of the company's management. This statement follows a significant market correction of about 3 per cent observed the previous day.

However, Adani Enterprises has issued a statement addressing recent media reports concerning Chairman Gautam Adani's succession plans. The company clarifies that Adani's comments regarding heirs and equal beneficial interest in the family trust have been misrepresented.

In a filing to stock exchanges, the company stated, "We would like to clarify that, in a recent interview, Gautam Adani shared his thoughts on succession planning to ensure business sustainability. He said that succession is not just one event but a journey and that it must be organic, gradual, and systematic. Gautam Adani did not specify any date or point in time."

The latest clarification comes in response to a Bloomberg report suggesting that the 62-year-old business magnate intended to retire at 70 and transfer control of his business empire to the next generation by the early 2030s. The report claimed that Adani's four heirs — his sons Karan and Jeet, along with nephews Pranav and Sagar — would become equal family trust beneficiaries.