Indian billionaires Mukesh Ambani and fellow tycoon Gautam Adani, both men, once hailed as symbols of India’s economic ascendance, are facing significant challenges that threaten their vast empires and personal wealth.
The forces at play — ranging from legal troubles to struggling core businesses — have disrupted their meteoric rise and exposed vulnerabilities in their diversified conglomerates, forcing them to drop from the centi-billionaire index, according to Bloomberg.
Gautam Adani’s troubles resurfaced in November when the U.S. Department of Justice (DOJ) announced a probe into allegations of bribery involving his conglomerate. The investigation has revived international scrutiny for Adani, who had been attempting to recover from the fallout of allegations made earlier this year by short-seller Hindenburg Research. The report accused Adani of fraudulent practices, sparking a crisis of confidence among investors.
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Adani, however, has remained defiant. At a public event following the DOJ probe, he dismissed the accusations and underscored his company’s commitment to transparency.
“We are committed to world-class regulatory compliance,” he declared, adding, “Each attack against the company only makes us stronger.”
Although he has been optimistic, the financial toll has been weighing heavier. Adani’s personal fortune, which reached a peak of $122.3 billion in June, has plummeted to $82.1 billion, according to the Bloomberg Billionaires Index. The group’s stocks have struggled to regain traction, with investors wary of potential risks posed by the U.S. investigation.
Ambani’s Weight of Expectations
Ambani, meanwhile, has faced a quieter but equally significant decline in fortunes. The chairman of Reliance Industries Ltd. saw his wealth peak at $120.8 billion in July, coinciding with the apex of his son’s opulent wedding festivities. By December, his net worth had dropped to $96.7 billion.
Reliance Industries, once lauded for its robust oil-to-chemicals business and dominance in telecom through Jio Platforms Ltd., is grappling with a series of headwinds. The energy business has underperformed, while the retail division faces slowing consumer demand in India’s urban centers.
Compounding these challenges is the growing threat of Elon Musk’s Starlink, which is set to disrupt the satellite broadband market — a key segment for Reliance’s telecom ambitions.
“Reliance remains a strong wealth creator, and each business has great value,” said Kranthi Bathini, an equity market strategist at WealthMills Securities in Mumbai. “But the pressure on the oil business has caused the stock to underperform.”
This shift in their fortune story has eclipsed their recent past, marked by lavish displays of wealth. Earlier this year, Ambani threw a wedding celebration for his youngest son, Anant, that seemed to rewrite the rules of extravagance.
For seven months, the Ambani family hosted a global spectacle that brought in international superstars like Rihanna and Justin Bieber to perform at luxurious venues spanning from Mumbai to the Italian Riviera. With a rumored price tag of $600 million, the event epitomized the flourishing fortunes of India’s elite, bolstered by an economy on the upswing and unprecedented demand for Indian business assets.
Facing the Challenges Head-on
Despite the downturn, Ambani has been proactive in reimagining Reliance’s future. The company is investing heavily in digital platforms, renewable energy, and entertainment. A joint venture with Walt Disney Co., for instance, aims to create an $8.5 billion media powerhouse to dominate India’s streaming market. Reliance is also collaborating with Nvidia Corp. to build artificial intelligence computing infrastructure in India, a move that could solidify its position in the country’s tech ecosystem.
While these shifts signal long-term growth potential, short-term hurdles persist. The retail business has seen slowed profit growth, particularly as digital competitors gain traction in top-tier cities. Meanwhile, the oil-to-chemicals segment — once the bedrock of Reliance’s profits — has been hit by waning global demand and increased competition from Chinese exports.
A Changing Landscape for India’s Billionaires
The challenges facing Ambani and Adani reflect broader uncertainties in India’s billionaire class. Radhakishan Damani, the founder of the DMart retail chain, has also experienced a significant decline in wealth. Once valued at $27.8 billion in October 2021, his fortune now stands at $17.1 billion, as DMart grapples with low footfall at new stores and intensifying competition from online retailers.
Even so, not all is bleak for India’s wealthiest. The combined fortunes of the country’s top 20 billionaires have grown by $67.3 billion since the start of the year, according to Bloomberg’s wealth index. Technology mogul Shiv Nadar and Savitri Jindal, the matriarch of the Jindal Group, have been among the biggest gainers, adding $10.8 billion and $10.1 billion to their fortunes, respectively.
Analysts believe that Indian conglomerates will focus on improving operational efficiency to weather these challenges.
“We will see founders focusing on making their companies more efficient given the level of uncertainty in the world,” said Shrikant Chouhan, head of equity research at Kotak Securities.
Trump’s Presidency Brings Fresh Global and Domestic Challenges
As Ambani and Adani navigate these obstacles, concerns of potential broader global and domestic challenges are growing. The return of Donald Trump to the White House poses potential trade challenges, with new tariffs that could make Indian exports less competitive.
“In the short term, there are challenges, especially with Trump imposing tariffs that will make India’s exports not that competitive,” warned V.K. Unni, a professor at the Indian Institute of Management Calcutta.
Meanwhile, India’s fast-growing economy and burgeoning middle class continue to offer opportunities. For Ambani and Adani, the next chapter will likely hinge on their ability to adapt to an evolving business climate — and whether they can turn current crises into opportunities for reinvention.