Gautam Adani, the 62-year-old Chairman of Adani Group has in a media interview said that he plans to step down from the role once he is 70, Reuters reported on August 5.
“Succession is very, very important for the business sustainability. I left the choice to the second generation as the transition must be organic, gradual and very systematic,” Adani told Bloomberg.
Notably, Adani is the second richest man in Asia, after Mukesh Ambani, and holds a fortune exceeding $100 billion, as per the Bloomberg Billionaire Index (BBI).
Speaking to Bloomberg, Adani outlined plans for his succession at the multi-billion empire. His sons Karan (37) and Jeet (26) Adani and their cousins Pranav (45) and Sagar (30) Adani are the named “heirs” via the family trust, it said.
After Adani retires, his heirs Jeet, Karan, Pranav and Sagar, will become equal beneficiaries of the family trust that holds the Adani Group, the report said.
The transition of stakes in the conglomerate's various firms will be conducted through a confidential agreement, Bloomberg said citing people familiar with the matter.
Adani Group did not respond to queries, Reuters said.
Adani's elder son Karan is at present the managing director of Adani Ports, while the younger Jeet is the director of Adani Airports, nephew Pranav is the director of Adani Enterprises and nephew Sagar is the executive director of Adani Green Energy, as per the Group website.
As for the vacated Chairman's post in the future, Pranav and Karan are the most likely candidates, as per the Bloomberg report.
In separate interviews with Bloomberg, the ‘heir apparents’ said that decision-making in times of crisis or for strategic calls will be “joint” once Adani cede's control, Reuters added.
The scions brushed off questions about the challenge of collective decision-making. “Though each of us are looking at different businesses, we are like one team. The family members who are in headquarters have lunch together each day, where day-to-day issues are discussed,” Pranav said.
Notably, Adani Enterprises, the group's flagship company, released its Q1FY25 earnings report last week. It registered over double profit YoY, thanks to expansion in its new energy business and increased investments in renewable energy.
Adani Group has a total market capitalisation of $213 billion, has holds as many as 10 listed entities in the infrastructure business, ports, shipping, cement, and solar energy sectors, among others.
One of the closest models for the Adani succession plan is that of luxury giant LVMH Moet Hennessy Louis Vuitton SE. Each of billionaire Bernard Arnault’s five children has an equal stake in a new holding company. Arnault, like Adani, has not said who will succeed him as chairman.
(With inputs from Reuters and Bloomberg)
