‘No time was taken’: Group clarifies Gautam Adani’s comments on succession plan

Gautam Adani (Photo: Bloomberg)

3 minutes of reading Last updated: August 7, 2024 | 11:01 AM IST

Adani Enterprises has issued a clarification following media reports that group chairman Gautam Adani will step down at the age of 70 and hand over control to his sons and their cousins in the early 2030s.

The company said Chairman Gautam Adani “was misquoted on the issue of heirs and equal share in the family trust fund”.

In a statement to the stock exchanges, the company said, “We would like to clarify that in a recent interview, Gautam Adani had shared his thoughts on succession planning to ensure business sustainability. He said that succession is not just a single event but a journey and it has to be organic, gradual and systematic. Adani did not specify any date or point in time.”

The company further said that the publications had misquoted Adani. “Furthermore, Adani was misquoted on the issue of heirs and equal share of profits in the family trust. He mentioned the involvement of two of his sons and two nephews in various interests of the group. We would further like to state that the share prices are purely market driven and the company’s management has no control or knowledge of any specific reason for yesterday’s share price movement.”

The company said: “It is worth noting that the stock market itself saw a 3 percent correction yesterday.”

Earlier this week, Bloomberg reported that in a recent interview, Adani (62) had said he planned to retire at the age of 70 and hand over control to the next generation. The report said, “Adani plans to retire at the age of 70, with his four heirs — sons Karan and Jeet, and cousins Pranav and Sagar — set to become equal beneficiaries of a family trust.”

The report also quoted Adani as saying, “Succession is very, very important for the sustainability of the business. I have left the choice to the second generation because the transition has to be organic, gradual and very systematic.”

Pranav Adani, Karan Adani, Sagar Adani and Jeet Adani hold important positions in various sectors of the Adani Group.

Meanwhile, in June, Adani regained the title of Asia’s richest person, overtaking Reliance Industries Chairman Mukesh Ambani, thanks to a significant jump in his companies’ shares. Adani’s net worth has reached $111 billion, making him the 11th richest person in the world. Ambani, meanwhile, is 12th on the Bloomberg Billionaires Index, with a net worth of $109 billion.

First published: August 7, 2024 | 11:01 AM IST