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Tag: Adani Group

  • The Story of Adani Scam – Full Case Study

    Adani Group is not just a name, it is one of the most popular brands from India that enjoys a towering reputation amongst the companies hailing from the subcontinent. Adani Group was founded by Gautam Adani back in 1988 in Ahmedabad, Gujarat. Starting initially as a commodity trading business with its flagship company Adani Enterprises Limited, the group has grown to a multinational conglomerate of high repute.

    Gautam Adani’s brand now boasts of an annual revenue of over US$ 13 billion and exercises its operations across 70 locations in 50 countries. Furthermore, Adani Group is also famous for being India’s largest port developer and operator, having around ten ports and terminals under its wing that includes Mundra Port, its largest.

    With the help of the promising services that Adani Group has delivered throughout the years and the growth that the company has witnessed, the president of Adani Foundation, Gautam Adani has scaled up the ladder to become the second richest person in Asia.

    However, the success story of Gautam Adani and the brand he built seems to be on unstable grounds lately after NSDL froze three main FPI accounts that have funded the organization.

    What happened to Adani Group?
    When did it happen?
    What happened as a result of the freeze on Adani’s Foreign Funds?
    Why were Adani’s FPIs frozen?
    What did Sucheta Dalal tweet and why did it become a sensation?
    FAQ

    What happened to Adani Group?

    According to the latest reports, National Securities Depository Limited (NSDL) froze three of the primary foreign funds of the group namely, Albula Investment Fund, Cresta Fund, and APMS Investment Fund. All of these companies are apparently registered in Port Louis, Mauritius, with Albula and APMS sharing the exact same address in Mauritius. These three funds together own shares worth Rs 43,500 crores of the four companies listed under the parent organization.

    When did it happen?

    Though it was only on June 14, Monday that news made to the headlines of almost all the major media channels and websites as per the depository’s website, these accounts were frozen on or before May 31.

    How will Flipkart Benefit from the Adani group Partnership
    On April 12 2021, Flipkart which is India’s one of the leading e-commerce firmannounced a partnership with the Adani group, which is a strategic andcommercial partnership. Adani Group is one of the largest multinationalinfrastructure companies in India. Let’s look at the below article to get anu…
    StartupTalkyAlan Joseph

    What happened as a result of the freeze on Adani’s Foreign Funds?

    As soon as the FPI accounts worth Rs 43,500 crores were seized by NSDL on Monday, June 14, 2021, the shares of Adani started to decline. The shares of Adani Enterprises witnessed a 24.99 % drop and were valued at Rs 1,201.10, whereas Adani Ports and Special Economic Zone tanked by 18.75 % to be valued at Rs 681.50 on the BSE.

    Adani Enterprises share Price
    Adani Enterprises Share Price

    Why were Adani’s FPIs frozen?

    It is apparent that the shares of Adani fell as an obvious result of the freezing of the company’s foreign funds but the reason that led to the freeze is still wrapped in mystery.

    According to some of the top officials at custodian banks and law firms, the freeze came as a result of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA).

    SEBI had reformed the know your customer (KYC) documentation required for FPIs as per PMLA in 2019. For the existing funds, SEBI granted them time till 2020, post which they needed to comply with the new norm and failing that will result in freezing their Demat accounts, which might be the case with Adani Group.

    Furthermore, SEBI is also reported to be investigating the stocks of Adani Group, which have gained between 200% and 1000% in the past year, in order to check if there was a price manipulation in them or not. The probe was initiated in 2020, sources said, while SEBI denied mentioning anything else on that matter.

    The new rules of the revamped KYC documentation for FPIs included that they need to submit some additional details that will contain the disclosures on common ownership and personal details of the chief employees of the fund like fund managers.

    The Subsidiaries of Adani Group that made it Successful
    Adani Group is known to one of most well-known business conglomerate and aleading integrated player in infrastructure and energy spaces in India. Thecompany is founded by Gautam Adani in 1988 and has its headquarters based inAhmedabad, Gujarat. Adani Group has businesses in different sectors like…
    StartupTalkyPV Vyshnavi

    What did Sucheta Dalal tweet and Why did it become a sensation?

    Though the actual reason behind the recent drop of Adani can somewhat be traced to the freezing of the primary foreign funds of the company, Sucheta Dalal’s recent tweet, though cryptic in nature, seems to visibly coincide with the falling of Adani shares. Soon after which the netizens from all around the country and abroad started to take great interest in that matter, which resulted in flooding Twitter and Facebook with a world of posts, tweets, and memes.

    Here’s the tweet that Sucheta posted:


    Sucheta Dalal resorted to anonymity but there were clear indications that it pointed to SEBI’s ongoing investigations of the Adani Group, its FPIs, and the sudden rise of its stock prices. The prices of the stocks of Adani went down in less than two days after Dalal’s tweet, which instantly caught the attention of the netizens and resulted in these memes:

    Some memes from Twitter:




    Sucheta Dalal’s tweet that coincided with the recent move of the stock market was also compared to that of Elon Musk’s tweet, which pulled down the cryptocurrency industry last month. This incident has also earned Dalal, the Padma Shri awarded journalist, who was famous for her contributions on the Harshad Mehta scam, Enron scam, the Industrial Development Bank of India scam, and more, the title of “Elon Musk of Indian stock market” on popular social media platforms.

    FAQ

    Who is Adani?

    Gautam Adani is an Indian billionaire industrialist and philanthropist who is the chairman and founder of the Adani Group, his estimated net worth is 7,080 crores USD.

    What companies does Adani own?

    Gautam Adani owns Adani Enterprises, Adani Ports & SEZ, Adani Green Energy, Adani Power, Adani Transmission and Adani Total Gas.

    What is the Net worth of Gautam Adani?

    The net worth of Gautam Adani is estimated to be around 7,080 crores USD.

  • How will Flipkart Benefit from the Adani group Partnership

    On April 12 2021, Flipkart which is India’s one of the leading e-commerce firm announced a partnership with the Adani group, which is a strategic and commercial partnership. Adani Group is one of the largest multinational infrastructure companies in India. Let’s look at the below article to get an understanding of how the Adani Group and Flipkart partnership will benefit between Flipkart in scaling its operation.

    Focus of Adani Group and Flipkart
    How will Flipkart Benefit from the Partnership
    Flipkart’s New Data Center
    What Adani Group said about the partnership
    What Flipkart said about the partnership
    FAQ

    Focus of Adani Group and Flipkart

    In this partnership on a strategic and commercial basis, Flipkart is planning to work with Adani Logistics Limited. Adani Logistic Limited is India’s largest diversified end-to-end logistic service provider in the country. It is a subsidiary which is fully owned by Special Economic Zone limited and Adani Ports.

    The main focus of this partnership is to strengthen the supply chain infrastructure of Flipkart and to further concentrate on enhancing the ability of the company to provide the services to its rapidly growing customer base in India.

    The Subsidiaries of Adani Group that made it Successful
    Adani Group is known to one of most well-known business conglomerate and aleading integrated player in infrastructure and energy spaces in India. Thecompany is founded by Gautam Adani in 1988 and has its headquarters based inAhmedabad, Gujarat. Adani Group has businesses in different sectors like…
    StartupTalkyPV Vyshnavi

    How will Flipkart Benefit from the Partnership

    As a part of the partnership, Adani Logistics will be constructing a 534,00 sq ft fulfillment center in Mumbai which is their upcoming logistics hub. This will be leased to Flipkart to solve the growing demand for e-commerce in the Western India. This will help in supporting the access for the market of thousand of various sellers and MSMEs in the particular region.

    Leveraging the state-of-the-art technologies, the center is expected to be functional in the Q3 of the financial year 2022. The center is expected to have the capacity to house the inventories of 10 million units of sellers at any point in time. The facility is also expected to enhance the employment opportunities by providing 2,500 direct jobs and thousands of indirect jobs.

    Revenue growth of Flipkart from 2014 to 2020
    Revenue growth of Flipkart from 2014 to 2020

    Flipkart’s New Data Center

    With the partnership with Adani Group, Flipkart will be setting up their third data center at AdaniConneX Private Limited which is a Chennai-based facility. Flipkart will get a chance to leverage AdaniConneX’s world-class expertise and industry-leading data center solutions regarding to technology.

    AdaniConneX is a new joint venture that is formed between EdgeConneX and Adani Enterprisers Limited.

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    What Adani Group said about the partnership

    The chairman of Adani Group, Gautam Adani had posted a tweet which said that Flipkart which is a homegrown e-commerce giant will be their new strategic and commercial partner. He also added that in the partnership between both the companies, AdaniConneX will focus on building their new Tier 4 data center.


    He also said that Adani Logistics which is India’s leader in the logistic industry will build a 534,00 sq ft fulfillment center and this new partnership will provide thousands of new jobs in Mumbai.

    Karan Adani who is the Chief Executive Officer of Adani Ports and Special Economic Zone, speaking about the strategic partnership and commercial partnership between both the companies said that, He was delighted to see two of India’s fastest-growing businesses coming together.

    He said this partnership will contribute towards building some of the most critical as well as state-of-the-art infrastructure that is required by the nation. He also added on saying that this is what Atmanirbharbharat should be all about.

    Karan Adani added on saying that, the broad range of partnership across their logistics and data center business is considered to be a unique business model and that he looks at this as one of the great opportunities to service the digital infrastructure requirements as well as the physical infrastructure requirements of Flipkart.

    He said that, Flipkart has been instrumental in defining the adoption of e-commerce in India. The definition is both through the value Flipkart creates and the innovation of technology to serve its customer base.

    Karan Adani also added on saying that he is looking forward to a fruitful and longer partnership with the company as they are focusing on learning from each other as well as leveraging their mutual strengths to prioritize the customers and to focus on developing the MSME sector of India.

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    What Flipkart said about the partnership

    Kalyan Krishnamurthy who is the Chief Executive Officer of Flipkart Group said that, The Adani group is unmatched in the way they have gone towards building various infrastructure across India. He said that what Adani group had bought to them was a unique combination of logistics, green energy, data centers and real estate infrastructure capabilities.

    Kalyan Krishnamurthy added on saying that, he is delighted to initiate their association with Adani Group which will strengthen their technological infrastructure and Supply Chain management.

    Kalyan Krishnamurthy said that, At Flipkart Group they are focused on ensuring that their customers get access to a wide range of products which will be made available by sellers across the country as they will be concentrating on continuous innovation to increase the affordability.

    He said that their logistics network and technological stack are instrumental in making it a reality and these investments would help them strengthen their presence to support the MSME sectors in India for the sellers while also creating jobs and improving the growth.

    FAQ

    Is Flipkart Indian company?

    Flipkart is an Indian e-commerce company headquartered in Bengaluru, which was acquired by Walmart.

    How much is Binny Bansal worth?

    The net worth of Binny Bansal is 120 crores USD as of 2021.

    Who is the CEO of Flipkart in 2020?

    Kalyan Krishnamurthy is going to be appointed as the new CEO of Flipkart.

    How rich is Adani?

    The net worth of Gautam Adani is US$ 57.1 Billion as of 9 April 2021.

    Conclusion

    We will have to sit back and observe the benefits of the strategic and commercial partnership of both the companies.