💼 India’s 2nd wealthiest person Gautam Adani’s business strategy is very similar to an average scrape dealer. A scrap dealer buys scrap at a throwaway price, finds something valuable there and then sale those for a heavy price. Gautam Adani is doing just the same but at a bigger scale.
👩⚖️ The Insolvency and Bankruptcy Code 2016 allowed the banks to auction companies that have defaulted on their debt obligations. Gautam Adani is using these auctions to find and acquire companies backed by real physical assets which can be turned around in a record time. These companies give Adani Group the option to grow inorganically. Organic expansion means locking thousands of crores of capital for years before these plants go live and generate revenue.
💰 In the last 6 years, Adani group has spent ₹50,000 crores to acquire 15 companies. 6 of them were in the power generation sector helped Adani Group double its capacity and become India’s biggest private power producer. Adani Group acquired 2 ports. Adani Group acquired bankrupt real estate companies to corner prime real estate in cities like Mumbai, Delhi and Noida. Now Adani Group is focused on acquiring cement companies to double the current capacity in just 1 year.
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