Adani Business Plan that made him richer than Jeff Bezos

used a very specific business strategy to surpass Jeff Bezos in the billionaire ranking he's the second richest man in the world right now after Elon Musk and experts are forecasting that he might surpass Elon Musk as well yes ladies and gentlemen we are talking about Gotham advani the man who didn't even finish his college and is right now the fastest growing billionaire in the world in the last five years he climbed from being the 10th richest man to the second richest man in the world surpassing Warren Buffett Bill Gates and most recently Jeff Bezos in 2018 his net worth was 8.7 billion dollars and right now it's over 150 billion dollars so the question is how can someone earn 140 billion dollars in the span of four years is this some kind of a big scam or is adani doing something that no one knows about yet is he involved with something illegal or is he about to take India to the next level with his business skills and most importantly what are the hidden business lessons that we can learn from him to apply and Implement in our own businesses watch this video carefully because I learned a lot while making this video and I'm sure you're going to learn a lot too before we get into the career life of Gotham adani it's very important that we know where he comes from he came from a very simple middle class family from Gujarat and is one of the eight children of his parents his father was a small time textile Merchant he dropped out of his college at the age of 16 because he got bored of studies has officially passed Jeff Bezos to become the world's second richest person don't forget Mr adani's parents are Indian so they're probably still like you know I still wish you went to medical school a billion is cool but you know what's cooler being a doctor with only 100 rupees in his pocket he took his first step in the entrepreneurial journey in 1978 he moved to Mumbai where he joined the Mahendra Brothers Diamond company where he worked as a diamond sorter in only three years he opened his own Diamond brokerage Farm now in the same year he gets a call from his brother masukbai adani who asked him to return to Gujarat to help him set up a plastic factory little did anyone know that this plastic factory was going to open doors to International Trade even to this day out of all his companies the most powerful company is still adani Enterprise limited where its main function is Import and Export this company still generates the maximum Revenue out of all his companies now let's have a look inside adani's plastic manufacturing business you see to create PVC pipes you need PVC granules and during that time the only PVC granule supplier in India was ipcl limited now ipcl Limited it could not supply all the requirements of adani so they had to start importing from other countries this is where Gautam adani did his first magic back in those days if anybody wanted to import PVC granules in bulk they would need a letter of authorization which was very costly and time consuming now Gotham adani found a way to bypass that which not only saved him a lot of time but it also helped him earn a lot of money so this is what he did instead of directly importing the PVC granules by himself he got third parties to import for him he made deals with State PSU export Corporation and gsec to get this done so basically he was placing his own order within their order to the respective exporters it's easier for them to get the letter of authorization because they used to order in much larger bulks than adani adani would keep what's needed for manufacturing and sell the rest to the market the government was happy because their companies were directly earning and benefiting from this trade it's it's a win-win for both parties soon adani import volume exploded from 10 metric tons to 40 000 metric tons in Just 4 years they grew by 400 times that's an average of 100 times per year now let's talk about their next biggest Cash Cow under the liberalization policy of India in 1991 Mundra Port of Gujarat was privatized adani group won that contract in 1995. through this Mundra Port adani group started doing something which is about to take India to the next level adani group started doing business in a way so that they have everything in control it's called beginning to end infrastructure development which means starting from manufacturing of the product till it reaches the hands of the customer adani group controls everything this business strategy was used by the legendary capitalist of America Andrew Carnegie now let's flip through the history pages and see what he did in 1890 Carnegie Steele had 80 percent of the U.S market share this is how they used to work he acquired a couple of coal and iron mines and set up some steel meals using the steel that he was producing he began constructing railway lines and started owning Railway roads shortly after that Carnegie steel started taking many Transportation routes under his control finally he began taking projects for constructions using the steel that he was producing and transporting them using the railroads that he owned production of Steel starts with coal and iron mine and ends with construction from coal mine to construction Carnegie still took everything in its control now let's see how adani group is doing the same now check out the brilliant strategic geographical positions of the major businesses of adani group the closest thing to adani Port project is adani portway bridge where all their shipments are delivered and stored and if you look closely you'll see that adani logistic is also nearby on top of that you'll see adani group Township and adani Wilmar all these companies are geographically close to each other you probably figured it out by now that all the major companies of adani group are within the same region of Gujarat and all the businesses are very interlinked to understand adani groups begin to End Business infrastructure works you need to under understand the three levels of their companies number one is Originators these are the companies where the production process starts adani gas adani coal adani Renewables adani iron mines and adani ports all fall under this category Next Level are the supporters which includes adani power adani airports and adani Logistics they support the initiator companies third and most importantly are the builders these are the data centers transmission Gas Distribution adani Wilmar adani Healthcare adani real estate and adani infra Builders are those companies that help to link supporters and Originators every business in adani group are internally well connected this allows them to control everything in the market related to their products starting from the production till it reaches the End customer this gives them the kind of advantage that explains how they were able to earn 140 billion dollars in just a matter of four years now pay close attention to understand how they are doing when they are able to control everything related to their product in the market they are also able to expand very quickly and efficiently they're able to scale in a way that is completely abnormal and nearly impossible for their competitors to replicate hence developing a naturally occurring Monopoly and we all know that wherever there is Monopoly there is massive profits but there is also a very dark side to it behind every success their controversies and adani group is no different in 2018 the Indian government released a tender to privatize six airports earlier than this the government used to give the contracts to the companies that had prior experience in building and running airports but this time they decided to relax the rules and allow companies with no prior experience with airports to bid for the tender and guess who won all six of those tenders yes the adani group they paid 2440 crore Indian rupees to airport authorities of India to take possession of the gender the financial minister of Kerala called it an act of brazen croianism which means that there was a huge partiality in awarding the contract now we're only scratching the surface over here there are more coming adani group is also India's largest port operator and largest thermal power producer in the last one year Gautam adani's net worth increased by more than 500 percent that raises the burning question how is he able to do all of these things so easily the answer is oligarchy which means powerful political connections everywhere in the world it's a common thing for business people to have powerful political connections if you look into the US you'll see that the top billionaires are from the technology sector being in the technology sector gives them some tax advantage the best examples are Facebook Amazon Google and apple similarly most of the Russian billionaires belong in the steel and oil industry to successfully operate in these industries the government's support is very important even in a democratic country like USA you'll see that the top one percent of the population control 40 percent of the wealth this is a harsh fact and we all have to accept it large business tycoons with powerful political connections always get the support of the government and they will continue to get it the world runs on capitalism and this is just how things are according to the Indian Express the adani group is under a 30 billion dollar debt and if they can manage it properly they can bring massive growth to India the speed at which that they're growing and constantly interconnecting their new Ventures are helping them to open doors of opportunities that did not exist before airports Seaport electricity Gas Distribution one by one they're taking everything under their control the best advantage of this is that everything will be well connected in India and it will take the infrastructure growth of India to the next level now the next important question is what can we learn from the adani group and how can we implement it in our own businesses lesson number one calculated risks every businesses have to take some kind of risk because there are no profits without risks but the most important thing is to understand evaluate and calculate the risk taking steps without understanding the risks involved can completely destroy a company you see even though advani group is under a lot of debt they are expanding rapidly if you look into their financial statement you'll see that every company is generating good profits that is why they're able to manage the expansion loads so well lesson number two take advantage of the loopholes to a lot of people this might sound wrong and unethical but that's not always the case just hear me out it is unethical only when you're breaking the law as long as you're not breaking the law everything is fine all systems have loopholes and if you're smart enough you can earn some good profits from it as long as it is not an unlawful act all big business says use these loopholes adani group used this loopholes to import large quantity of PVC granules like we discussed earlier and the final lesson learn to give up the good for the great quoting John D Rockefeller more often than not we get very attached to a particular product or a certain way of doing something because of which we turn a blind eye to the changes in the market time is constantly changing everything around us an idea that was profitable many years ago may not be profitable today all the large corporations that are successful right now has learned to adapt through the time that is why they're still standing right now even adani group they used to be in the traditional kind of businesses and now they're moving into developing data centers generating renewable energy and so much more please share your feedback in the comments section and do let me know what you think about this video and don't forget to like share and subscribe see you in the next video [Music]

Channel: Lombu Abid

Views: 11,625

Keywords: lombuabid, adani, adani group of companies, adani group debt, adani wilmar, jeff bezos, elon musk, billionaire, how adani surpass bezos, how adani surpass ambani, case study, business case study, gautam adani, gautam adani net worth

Id: UJTxLU_z5FM

Length: 12min 1sec (721 seconds)

Published: Tue Nov 01 2022