India’s two wealthiest individuals, Mukesh Ambani of Reliance Industries and Gautam Adani of the Adani Group, have seen their net worth decline below the $100 billion mark, according to the Bloomberg Billionaires Index. Both business magnates, once among the world’s centibillionaires, are now navigating challenges affecting their companies and fortunes.
Ambani Faces Declining Energy Earnings and Retail Struggles
Mukesh Ambani, whose wealth peaked at $120.8 billion in mid-2023, has seen his net worth fall to $96.7 billion as of December 13. Reliance Industries, his flagship enterprise, is grappling with declining earnings in its energy division due to reduced demand and competition from Chinese exports. The company’s retail operations have also slowed, with digital rivals gaining market share in urban areas.
Ambani is pivoting toward digital platforms, renewable energy, and retail brands to reignite growth. However, competition in the satellite broadband space, particularly from Elon Musk’s Starlink, and weaker performance in Reliance’s oil-to-chemicals business have kept the stock under pressure. Despite these headwinds, analysts affirm Reliance’s value as a strong wealth generator.
Adani Grapples with US Investigations and Fraud Allegations
Gautam Adani’s net worth, which soared to $122.3 billion in June, has now dropped to $82.1 billion following allegations of fraud and bribery. A U.S. Department of Justice investigation into bribery allegations in November added to the ongoing fallout from Hindenburg Research’s 2022 report accusing the Adani Group of fraudulent practices.
Adani has denied all allegations and emphasized the company’s commitment to regulatory compliance. While he continues efforts to rebuild investor confidence, these accusations have impacted the group’s market value and access to funding.
Broader Impact on India’s Wealth Leaders
The decline in fortunes of Ambani and Adani comes amid a mixed year for India’s wealthiest. Despite challenges faced by some top industrialists, the Bloomberg Billionaires Index reports that the 20 richest Indians collectively added $67.3 billion in wealth this year. Technology leader Shiv Nadar and Savitri Jindal, who chairs the Jindal Group, have gained $10.8 billion and $10.1 billion respectively.
Both Ambani and Adani face additional hurdles heading into 2024, from market uncertainties to global economic shifts. However, their enduring influence on India’s economy and global standing remains significant.