Mukesh Ambani and Gautam Adani Exit $100 Billion Club Amid Mounting Business Challenges
India’s richest billionaires, Reliance CMD Mukesh Ambani and Adani Group Chairman Gautam Adani, have both exited Bloomberg’s exclusive $100 billion club for 2024, the publication reports.
This departure highlights the challenges faced by their respective conglomerates in a year marked by uncertainties and setbacks.
Mixed Fortunes for India’s Wealthiest
While Ambani and Adani faced significant declines in their net worth, India’s top 20 billionaires collectively saw their wealth increase by $67.3 billion since January 2024.
The biggest gainers were tech entrepreneur Shiv Nadar, who added $10.8 billion, and Savitri Jindal, whose net worth grew by $10.1 billion.
Mukesh Ambani’s wealth dropped from $120.8 billion in July, coinciding with his son Anant’s wedding, to $96.7 billion as of December 13, according to the Bloomberg Billionaire Index (BBI).
The decline is attributed to underperformance in Reliance’s energy and retail sectors and rising investor concerns about increasing debt.
Gautam Adani’s Mounting Challenges
For Gautam Adani, the setbacks were more severe. His net worth plummeted from $122.3 billion in June to $82.1 billion by December, driven by investigations and allegations.
A United States Department of Justice (DoJ) probe, announced in November, has created uncertainty and stalled momentum for the Adani Group.
This probe follows a damaging report by Hindenburg Research earlier in the year, accusing the conglomerate of fraud. These controversies have significantly impacted Adani’s standing, relegating him to 19th place on the BBI.
Exiting the Centi-billionaires Club
The Bloomberg report noted that both Ambani and Adani are no longer part of the “elite centibillionaires club,” which includes individuals with wealth exceeding $100 billion. This marks a notable shift in their global rankings among the world’s wealthiest.
Global Challenges and Opportunities
The year 2024 brought significant changes to the global billionaire landscape. Uncertainty surrounding the incoming administration of US President-elect Donald Trump and potential competition from Elon Musk’s Starlink in India’s satellite broadband market could further affect Indian telecom players.
Musk himself made history this year by becoming the first individual to surpass a $400 billion net worth, driven by SpaceX’s valuation surge to $350 billion.
Amazon founder Jeff Bezos and Meta’s Mark Zuckerberg also witnessed significant gains, reflecting the dynamic nature of global markets.
Meta’s resurgence, supported by its 3 billion monthly active users and market capitalization of $1.255 trillion, helped Zuckerberg re-enter the top 10 richest individuals for the first time since January 2022.
India’s Billionaires on the Global Stage
Despite setbacks for Ambani and Adani, Indian billionaires made notable appearances on Bloomberg’s 2024 list of the world’s richest families.
The Ambanis ranked eighth, while the Mistrys of Shapoorji Pallonji secured the 23rd spot. The list excluded first-generation wealth and single-heir fortunes, which disqualified Adani.
Globally, the Walmart Waltons topped the list with a combined wealth of $432.4 billion, surpassing even Elon Musk’s individual fortune and the wealth of Middle Eastern royal families.
Rising Wealth Among India’s Top Billionaires
While Ambani and Adani faced significant challenges, other Indian billionaires experienced substantial growth in 2024.
The report underscores the resilience of India’s wealthiest individuals amid global and domestic economic uncertainties.
Shiv Nadar’s $10.8 billion gain and Savitri Jindal’s $10.1 billion increase highlight the diverse opportunities in India’s technology and industrial sectors.
Future Implications
The dramatic shifts in the fortunes of Ambani and Adani underscore the volatility and risks inherent in global markets.
With ongoing investigations, rising debt, and increasing competition, both billionaires face significant hurdles to reclaim their positions in the centibillionaires club.
However, the resilience shown by India’s wealthiest as a whole suggests that the country’s billionaires will continue to play a pivotal role on the global stage.
