1. Home
  2. English
  3. Business
  4. Prime Minister Modi has provided a visionary and inspirational leadership to India: Gautam Adani
Prime Minister Modi has provided a visionary and inspirational leadership to India: Gautam Adani

Prime Minister Modi has provided a visionary and inspirational leadership to India: Gautam Adani

0

Gautam Adani interview on India Today TV

RC: Hello, I am Raj Chengappa and welcome to this special interview of Gautam Adani, Chairman of the Adani Group.

Gautambhai, thank you for speaking to India Today.

The growth of the Adani Group has been truly astonishing. In little over a decade, you have become India’s largest private sector power producer, port operator, airport operator, consumer gas business and electric transmission company apart from being the largest infrastructure developer in renewables.

This year, your group has become the country’s second largest cement manufacturer and you are diversifying rapidly into other sectors including aircraft maintenance, manufacturing, telecom, data centres and logistics.

But there is even more that you have achieved in 2022. With a personal net worth of $150 billion, you have become the richest Indian overtaking Mukesh Ambani of Reliance and other stalwarts to the top spot.

For your phenomenal growth in terms of both business and in personal wealth and the impact that you have made to millions across the country, Gautambhai, I am happy to inform you that India Today magazine has declared you its ‘Newsmaker of the Year”.

So, congratulations for this recognition.

Q1: When you look back at 2022, what makes this year so special for you?

RESPONSE: Thank you, Raj.
2022 was an exceptional year in many ways.

We had a successful Adani Wilmar IPO and, thus, Adani Wilmar is becoming the seventh listed company in the Group. We have built a business model where we start a business from scratch, make it profitable and then go public. This IPO was another example of that.

We also became India’s second largest cement manufacturer when we acquired ACC and Ambuja Cements for around $10.5 billion. It is the largest acquisition

we have ever made, and it is also India’s largest-ever M&A transaction in the infrastructure and materials space.

Q2: Apart from being the richest Indian and the richest Asian, you are also the world’s third richest person. How does it feel to be that wealthy? What does money mean to you?

RESPONSE: See, Rajbhai, these rankings and numbers do not matter to me. They are only media hype. I am a first-generation entrepreneur who had to build everything from scratch. I get my thrills from handling challenges – the bigger they are, the happier I am.

For me, the opportunity and ability to make a difference in the lives of people and contribute to the growth and building of the nation is far more satisfying and important than being on some wealth ranking or valuation list. I am thankful to God that he has given me a great opportunity to serve the nation through infrastructure building.

Q3: So, what makes you happy?

RESPONSE: Personally speaking, this was the biggest year of my life. This year, I celebrated my 60th birthday. This personal milestone apart, on this occasion, my family committed Rs 60,000 crore to the Adani Foundation to support three social causes close to my heart—education, healthcare and skill development—which are foundational for any nation. This has given me immense satisfaction and happiness which no professional achievement can ever give.

Q4: What motivates you in life?

RESPONSE: As an ordinary man, the courage, strength, resilience and tenacity of the average Indian are very inspiring and motivating for me. To share with you, at the 2nd edition of our Green Talks series, I was greatly moved by the stories of Arunima Sinha and Kiran Kanojia, two extraordinary women who unfortunately lost their limbs but yet conquered the world. Arunima climbed Mt Everest and Kiran, a blade runner, is running marathons. Both are incredible women and the pride of India.

They are the real heroes of naya India. Their stories moved me so much that I had tears in my eyes. I am truly humbled by their spirit. Could there be anything more motivating than such courage, valour and determination in the face of adversity? Seeing their story, my belief is further reinforced that there is no machine stronger than human beings. Such human stories are the biggest source of motivation for me.

Q5: What is the logic behind your group’s expansion whether in building
infrastructure or your entry into newer areas?

RESPONSE: I was born in a middle-class family and I lived through the 1970s and 80s when we had to struggle for bijli, sadak and paani. That was a time when India had a huge infrastructure deficit in ports, airports and other areas. In contrast, China, which also became independent around the same time as India and had a lower per capita income than India in 1990, began leapfrogging ahead of India in development. All these issues instilled a huge desire in me to do whatever I could to transform India, particularly in infrastructure, and make India stronger.

Meanwhile, starting from 1991, policy changes created an enabling environment for the entry of the private sector in the infrastructure space. This is why I am determined to use every opportunity to build world-class infrastructure and facilities for India and Indians.

Q6: What is your management style? What is your mantra of success?

RESPONSE: All our businesses are run by professional, competent CEOs. I do not interfere in their day-to-day functioning. My role is limited to formulating strategy, capital allocation and their review.

It is for this reason that I have time to not only manage such a large and diverse organisation but also incubate several new businesses and also look for new opportunities for acquisitions.

Q7: You have recently taken over the NDTV media group. Will the same management style of non-interference continue in NDTV also? Will NDTV continue to have its editorial independence?

RESPONSE: Raj, on editorial independence, let me say categorically that NDTV will be a credible, independent, global network with a clear lakshman rekha between management and editorial. You can endlessly debate and interpret each and every word of what I am saying, as has been done by many, but my fundamental point is that the proof of the pudding is in the eating. So, please allow us some time before you start judging us.

Q8: There are concerns that the Adani Group has very high levels of debt something to the tune of Rs 2 lakh crores. What is the reason behind your confidence for taking on this level of debt?

RESPONSE: I must confess that I am greatly surprised by the conversations around our debt. We are financially very strong and secure. Such noises are coming from two categories. The first category is of the people who are not doing deep diving to understand the detailed nuances of debt and finances of company. I am sure if they make an effort to understand the financial statements, all the misgivings about debt will disappear. However, there is the second category of people with vested interests deliberately creating confusion and misunderstanding to tarnish the reputation of the group.

The fact of the matter is that, in the past nine years, our profit has been growing at twice the rate of our debt, because of which our Debt to EBITDA ratio has come down from 7.6 to 3.2, which is very healthy for a large group where most of the companies are in the infrastructure space with assured and predictable cash flow unlike in manufacturing.

It is for this reason that not only national but international rating agencies have rated us equivalent to India’s sovereign rating. It is a matter of great pride for me that no other business group in India has as many companies as the Adani Group which has sovereign ratings.

Raj, you are well aware that rating agencies, particularly the international ones, are very conservative and stingy in giving ratings and they have a very rigorous and robust system and process of financial analysis.

To share with you, it is for these fundamental financial strengths of my group that we were able to close the ACC and Ambuja deal of $10.5 billion in a record time of just three months.

Q9: There are also concerns that banks, including public sector banks, have huge exposure to Adani debt. How do you respond to such concerns?

RESPONSE: Raj, this is a good question. People raise concerns without verifying the facts. The fact is, nine years ago, out of our total debt, 86% was lending from Indian banks. But now, the exposure of Indian banks in our total lending is reduced to only 32%. Almost 50% of our borrowing is through international bonds. Raj, you will appreciate that international investors are very astute and subscribe after proper due diligence and deep study.

Q10: How would you respond to critics who say that your success is linked to Prime Minister Narendra Modi?

RESPONSE: Prime Minister Modi and I are from the same state. That makes me the easy target of such baseless allegations.

When I look back at my entrepreneurial journey, I can divide it into four phases. Many will be surprised to know that it all began during the tenure of Rajiv Gandhi as Prime Minister when he first liberalised the Exim policy and, for the first time, several items were brought in the OGL list. That is what helped me to start my export house. But for Rajiv Gandhi, my journey as an entrepreneur would never have taken off.

The second big push I got was in 1991, when the duo of Narasimha Rao and Manmohan Singh initiated sweeping economic reforms. Just like many other entrepreneurs, I too was a beneficiary of those reforms. There is no point in further elaborating on it because so much has been said and written about it.

The third turning point for me came in 1995 when Keshubhai Patel was sworn in as Gujarat Chief Minister. Until then, all development in Gujarat was only around NH 8 from Mumbai to Delhi via cities like Vapi, Ankleshwar, Bharuch, Silvassa, Vadodara, Surat and Ahmedabad. He was a visionary and focused on coastal development – and it was that policy change that took me to Mundra and prompted me to build our first port. The rest, as they say, is history.

The fourth turning point was in 2001, when Gujarat witnessed a massive focus on development under Chief Minister Narendra Modi. His policies and their implementation went on to not only change the economic landscape of the state but it also brought social transformation and development of previously underdeveloped areas. It also allowed industries and employment to take off like never before. Today, under his able leadership, we are seeing a similar

resurgence at the national and international levels, where a new India is now asserting itself.

It is unfortunate that such narratives are being pushed against me. As I explained, these allegations are baseless and suffer from recency bias seeing our Group’s success through a short-term lens. The fact of the matter is that my professional success is not because of any individual leader but because of the policy and institutional reforms initiated by several leaders and governments during a long period of over three decades.

Q11: What is your view on Prime Minister Modi’s leadership style?

RESPONSE: Prime Minister Modi has provided a visionary and inspirational leadership to India. He has not only brought about significant policy changes but also through various programmes and schemes directly touched the lives of every Indian. There is hardly any aspect of governance which he has not touched.

He is trying hard to bring transformative changes not only in the Indian economy but also pushing for social transformation and inclusive growth. He has through several innovative schemes and their effective implementation, given a strong push to industrial and economic development of India. Schemes like Aatmanirbhar Bharat, Digital India and Start-up India, have acted as economic multipliers and have not only created endless business and manufacturing opportunities but have also created millions of direct and indirect jobs.

The Prime Minister’s equally strong focus on social sector, agriculture economy and underdeveloped areas of the country with a safety net for the poor has ensured that the growth is inclusive and sustainable. His schemes like Swachh Bharat, Jan Dhan Yojana, Direct Benefit Transfer and Ayushman Bharat have brought transformative changes in India.

Q12: Tell me, as an individual you have faced many adversities, challenges, protests, criticisms, be it in Australia, Sri Lanka or in various parts in India. How do you react to this?

RESPONS: Raj, this is an interesting question. Gautam Adani is a product of a democratic India. Protests, criticism and allegations are essential parts of a vibrant democracy. In fact, they define democracy. I am a firm believer that our democracy has given us economic freedom and opportunities and we all have

benefited from it. Now we can’t complain and do cherry-picking about other aspects of democracy which have their own functional values within the boundary of law.

You would appreciate that we are in the infrastructure sector which is the most difficult space to work in. I have faced such challenges many times. I have a very open mind towards criticism. For me, the message has always been more important than the messenger. I always introspect and try to understand the other’s point of view. I am conscious that neither am I perfect nor am I always right. Every criticism gives me an opportunity to improve myself.

Q13: Is that part of the Adani culture?

RESPONSE: Yes, giving up has never been part of Adani’s culture. Over the years, the Group has developed a strong and professional team with endless energy and a problem-solving approach. We are always looking at solutions. Having honed my skills in such a dynamic democracy like India, my Group and I are confident that we can deliver and do business in any part of the world.

I have faced adversity and crisis from my childhood. Each of these occasions has taught me several valuable lessons and made me stronger. It is for this reason that I always tell my team: ‘Never waste a crisis’.

Q14: You are also betting big on green energy especially solar and hydrogen. What makes you confident that these would become viable businesses in the near future given the costs of converting say green hydrogen into fuel including storing it?

RESPONSE: Green energy is very close to my heart and energy transition is not only a huge business opportunity but also our responsibility to the future generations. The Govt of India has brought a very attractive production linked incentive scheme (PLI) which has made the green hydrogen business viable and attractive. In fact, I am very confident that with this enabling support we will not only meet domestic demand but soon become a green hydrogen exporter.

Q15: Like Dhirubhai Ambani you are a first-generation entrepreneur. Is there someone you look upon as a mentor?

RESPONSE: Dhirubhai Ambani is a source of inspiration for millions of budding entrepreneurs in India. He has shown how a humble man without any backing or resources and against all odds can not only set up a world-class business group but also leave a legacy. Being a first-generation entrepreneur and having a humble beginning, I am deeply inspired by him.

Q16: What is the state of India’s economy and how do you see India’s growth in the
years ahead?

RESPONSE: In our 75 years of independence, it took us 58 years to get to our first trillion dollars of GDP, 12 years to get to the next trillion and just five years for the third trillion. But now, if you look at our pace of social and economic reforms, I see India adding a trillion dollars to its GDP every 12 to 18 months within the next decade.

I am very optimistic about the growth and prosperity of India. This optimism comes from the fact that, in 2050, we will have a young India of 1.6 billion people with a median age of 38. We will also have the world’s largest middle- class population. This demographic dividend combined with the largest middle class will spur growth and prosperity in India making it a $30 trillion economy. So, clearly, this century belongs to India.

Q17: Many experts think that there is likely to be a global recession in 2023. Are you concerned by such predictions?

RESPONSE: Raj, I am a born optimist and never lose hope. I recall that many pundits had painted a similar gloom scenario for India during the 2008 global financial crisis. But India was successful in beating the prediction.

I am optimistic that the next union budget would provide a great opportunity to address all these concerns. A strong focus on capital expenditure, employment, social infrastructure and social security will help in facing the global headwinds of recession and India will emerge stronger.

LEAVE YOUR COMMENT

Your email address will not be published.

Join our WhatsApp Channel

And stay informed with the latest news and updates.

Join Now
revoi whats app qr code