How India’s Gautam Adani went from being poorer than Dangote to becoming third richest man

In April 2014, Aliko Dangote was far richer than Indian billionaire and founder of Adani Enterprises, Gautam Adani, with the Nigerian investor ranked within the top 60 richest people when his wealth was pegged to current ranking, and Adani was placed outside the 400 richest list.

At the time, Dangote’s wealth was estimated at $24.7 billion, according to historical figures obtained from Bloomberg Billionaire Index, and Adani was worth $5.42 billion. The 2014 figures used as Adani’s net-worth were compiled from that year.

According to analysis of Dangote’s wealth trajectory, Ikeanumba Africa Magazine gathered the Nigerian investor’s networth depreciated by -22.6% within nine years, while that of Adani significantly grew by 2,538.3% during the same period.

This indicated that the Dangote cement founder became poorer, losing $5.60 billion, which is more than the total estimated wealth Adani held at the start of second quarter 2014, and also went down the ranking to 76th spot.

During this period, Adani’s networth increased, following a gain of $137.58 billion. This upped his billionaire ranking to the third richest position, rising above over 400 billionaires, including Dangote, Bernard Arnault and Bill Gates within nine years.

Ikeanumba Africa Magazine understands that within the period in review, Dangote’s wealth was heavily impacted by the devaluation of naira, which has depreciated by -168.9%, exchanging at N430.33 to $1 as at Monday, in contrast to the N160/$1 rate in 2014, but Indian Rupee has depreciated only by -27.4% to ₹79.45 Rupees from ₹62.33 Rupees.

Meanwhile, Adani had gained from the significant rise in his company’s stock value, as high demand for Adani Enterprises’ share between 2014 to date drove his investment in the firm up by 1,185.5%, with the share price rising from ₹248.35 Rupees to ₹3,192.60 Rupees.

However, Dangote’s investment in his cement business had slowed by 5.69%, with the share hitting N245 from N231.80kobo. Analysis indicates Dangote sugar investment is holding up his networth after gaining 37.6%, as Dangote Sugar share rose to N16.40kobo from N11.91kobo within the review period.

In the last nine years, Dangote had majorly invested in cement and food business since he founded his corporation in 1981, before branching into the oil industry fully, a $25 billion refinery investment that is expected to commence operation next year.

But Adani had expanded his investment from the commodities importation business created in 1988, known as Adani Enterprises, to owing India’s largest port, Mundra Port, and establishing Adani Power and Adani Transmissions. He also owns 37% of Adani Total Gas, as well as 65% of Adani Ports & Special Economic Zone.

He had also acquired 74% stake in India’s second-busiest airfield, Mumbai International Airport in September 2020, and Swiss giant Holcim’s cement business in India, which cost him $10.5 billion purchase in May 2022. Other business Adani owns includes Adani Green Energy.