Asia’s two richest Gautam Adani and Mukesh Ambani’s ‘war’ begins, who will be the king and who will suffer?

Ambani’s biggest challenge

Ambani’s Reliance Jio Infocomm Ltd. is the top player in India’s mobile market, while the Adani Group does not even have a license to provide wireless telecommunications services. But, it seems, that Adani has made all the preparations to come and play on Ambani’s ambitious ground, so the Ambani camp is completely on high alert. According to the Economic Times report, people familiar with the matter have informed on the condition of anonymity, that the Ambani camp is very cautious after Adani’s entry in the 5G network auction. According to people familiar with the matter, a group of associates has advised Mukesh Ambani to buy the foreign telecom company and ask him to expand and diversify his business outside India, but with the help of advisors. A second section has advised to save money to face any challenge on home turf.

Ambani vs Adani… the ‘war’ begins

Mukesh Ambani, whose net worth is close to $90 billion, has never bid to buy any foreign company. And according to people familiar with the matter, the biggest reason behind this decision of Mukesh Ambani was that he had decided that if there was a challenge from Adani, his financial position would remain strong and according to Ambani it would be a It will be a wise decision. At the same time, Adani, who has earned the world’s highest wealth this year, is posing a tough challenge in the 5G auction and Gautam Adani has a net worth of $ 118.3 billion this year based on the data of Bloomberg Billionaires Index. Is. Adani has been quietly expanding its business for the past 20 years, but now two of Asia’s richest businessmen are increasingly moving on the same ground, and Adani has decided to expand its business beyond traditional realms. has decided.

billionaire dynasty

This conflict, which started between two billionaires of India, is now setting the stage to go beyond the borders of India and the war has already started at home, because India, a country of 3.2 trillion economy, is going digital very fast. India’s market is likely to witness unprecedented growth after the arrival of 5G networks, so experts believe that this money fight will start even beyond the commodity-led sectors, where Ambani And Adani… both will try their luck. Emerging opportunities from e-commerce to data streaming and storage, reminiscent of America’s 19th-century economic boom that fueled the rise of billionaire dynasties such as the Carnegies, Vanderbilts and Rockefellers, are likely to happen in India as well. , whose main players will be Ambani and Adani.

Billionaires eye on Indian market

Arun Kejriwal, founder of KRIS, a Mumbai investment advisory firm that has been tracking the Indian market and two billionaires for the past two decades, told The Economic Times that both Indian households are equally hungry for growth, and that means they are essentially a Others are going to join the competition. He said that, “Ambani and Adani will cooperate, co-exist and compete.” He added that, “And in the end, the most qualified person will move on.” At the same time, according to the Economic Times report, Adani and Ambani Representatives of U.S. companies declined to comment for this story.While in a public statement on July 9, the Adani Group said it had no intention of entering the consumer mobile space currently dominated by Ambani. and will only use any airwaves purchased in a government auction to build and enhance “private network solutions” that will focus on enhancing cyber security at its airports and seaports.

Will Adani enter the telecom market?

However, despite such remarks, there is speculation that Adani may eventually venture to offer wireless services to consumers. At the same time, Sankaran Manikutty, a former professor at the Indian Institute of Management in Ahmedabad, said, “I don’t underestimate Adani’s late entry in the consumer mobile market compared to Ambani’s and competition with Jio, not at all at the moment”. For decades, Adani’s business has focused on sectors such as ports, coal mining and shipping, while Ambani continued to invest heavily in the oil business, but that equation has changed dramatically in the past year.

Adani’s eyes reach abroad

In March this year, the Adani Group was asked to explore possible partnerships in Saudi Arabia and according to a Bloomberg report, the Adani Group could invest heavily in Saudi Arabia’s state-owned oil company Aramco. Meanwhile, a few months before that, Reliance, which still derives the majority of its revenue from crude oil-related businesses, scrapped plans to sell a 20% stake in its energy unit to Aramco. Negotiations on this transaction were going on continuously for the last two years. At the same time, there is significant overlap between the two billionaires in the green energy sector, and both Ambani and Adani have spoken of $70-70 billion investment in green energy, a priority given by Prime Minister Narendra Modi’s government. joined. Meanwhile, Adani has started indicating deeper ambitions in digital services, sports, retail, petrochemicals and media. Ambani’s Reliance is either already dominant in these areas or has big plans for them.

Will consumers benefit?

In telecommunications if Adani starts targeting mass consumers, history suggests that prices may drop in the early stages of competition, but if both the companies acquire a monopoly, India’s wireless space may have lost its current market share. It is dominated by three private players. When Ambani made his initial foray into telecom in 2016, he offered free calls and very cheap data, which was described as an audacious move, but, once again, the price has gone up. So it will be interesting to see, how much do consumers benefit in the battle of two billionaires?

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