Gautam Adani, the 62-year-old Chairman of Adani Group, stated in a media interview on August 5 that he intends to stand down from the position when he reaches the age of 70.
“Succession is essential for the long-term sustainability of any business. I entrusted the decision to the second generation because the transition needs to be organic, gradual, and meticulously planned,” Adani explained to Bloomberg.
Notably, Adani is Asia’s second richest man behind Mukesh Ambani, with a fortune of more than $100 billion, according to the Bloomberg Billionaire Index (BBI).
Succession Plan
Adani told Bloomberg about his succession plans at the multibillion-dollar conglomerate. His sons Karan (37) and Jeet (26) Adani, as well as their cousins Pranav (45) and Sagar (30), are named “heirs” through the family trust, according to the report.
According to the story, when Adani retires, his heirs Jeet, Karan, Pranav, and Sagar will be equal beneficiaries of the family trust that owns the Adani Group.
The transfer of holdings in the conglomerate’s numerous subsidiaries would take place under a confidential arrangement, according to Bloomberg, citing people familiar with the situation.
Adani Group did not answer Reuters’ inquiries.
Who is most likely to get what?
According to the Group’s website, Adani’s eldest son Karan serves as the managing director of Adani Ports, his younger brother Jeet is the director of Adani Airports, nephew Pranav is the director of Adani Enterprises, and nephew Sagar holds the position of executive director at Adani Green Energy.
According to Bloomberg, Pranav and Karan are the most likely contenders to fill the vacant Chairman position in the future.
In separate interviews with Bloomberg, the ‘heir apparent’ stated that decision-making in times of crisis or strategic calls will be “joint” once Adani relinquishes control, Reuters reported.
The scions dismissed questions about the challenges of joint decision-making. “Although we each focus on different businesses, we operate as a team. Every day, family members at the headquarters have lunch together and discuss daily matters,” Pranav explained.
Good first-quarter results
Notably, the group’s flagship company, Adani Enterprises, published its Q1FY25 results report last week. It raised its investment in renewable energy and expanded its new energy company, resulting in a profit that more than doubled year on year.
Adani Group has a $213 billion market capitalization and owns up to ten listed firms in the infrastructure, ports, shipping, cement, and solar energy industries, among others.
The succession plan of luxury behemoth LVMH Moet Hennessy Louis Vuitton SE is one of the most similar models to Adani’s. Each of billionaire Bernard Arnault’s five children owns an equal interest in a newly formed holding company. Arnault, like Adani, has not revealed who would succeed him as chairman.
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