Gautam Adani Says No Other Indian Group Has As Many Companies Rated On Par With Sovereign Rating
The group's profit has been growing at twice the rate of its debt in the last nine years, says Adani.
Gautam Adani, the world's third richest man, has said that no other Indian conglomerate other than the Adani Group has as many companies rated equivalent to India’s sovereign rating.
Adani Group's profit has been growing at twice the rate of its debt in the last nine years with "predictable and assured" cash flows, Adani said in an exclusive interview with India Today. The media house has named Adani as the 'Newsmaker of the Year'.
"It is a matter of great pride for me that no other business group in India has as many companies as the Adani Group which has sovereign ratings," he said.
The billionaire countered concerns about the group's debt by pointing out that the debt-to-Ebitda ratio of the conglomerate has come down from 7.6 to 3.2 in the last nine years.
Moreover, he said, the exposure of Indian banks to the group's debt has shrunk from 86% to 32% in the last nine years. "Almost 50% of our borrowing is through international bonds."
Key Turning Points In Business
Adani attributed his business success to policy and institutional reforms initiated by several leaders and governments of over three decades.
Liberalisation of export-import policy under former Prime Minister Rajiv Gandhi helped the Gujarat-born entrepreneur start his export house. "But for Rajiv Gandhi, my journey as an entrepreneur would never have taken off."
The second big push, he said, came with the economic reforms initiated in 1991 by former Prime Minister Narasimha Rao and then Finance Minister Manmohan Singh, who went on to become India's prime minister.
Then in 1995, under the chief ministership of Keshubhai Patel, who focused on coastal development, Adani built the port in Mundra.
"Until then, all development in Gujarat was only around NH 8 from Mumbai to Delhi via cities like Vapi, Ankleshwar, Bharuch, Silvassa, Vadodara, Surat and Ahmedabad," he said.
The fourth "turning point", Adani said, was in 2001 under the leadership of Narendra Modi, then chief minister and now the country's prime minister.
Modi's policies and their implementation went on to not only change the economic landscape of the state but also brought social transformation and development of previously underdeveloped areas, he said. "It also allowed industries and employment to take off like never before."
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.