Every Obstacle Makes Us Stronger, Says Gautam Adani On US Allegations

Addressing the legal matter involving the US Department of Justice, Adani Group Chairman Gautam Adani on Saturday responded to it as a challenge which the Group has faced "not for the first time".

"As most of you would have read, less than two weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges," Adani said at the 51st Gem and Jewellery Awards in Rajasthan's Jaipur. "What I can tell you is that every attack makes us stronger, and every obstacle becomes a steppingstone for a more resilient Adani Group."

He reiterated that despite a lot of the "vested reporting", no one from the Adani Group has been charged with any violation of the FCPA or any conspiracy to obstruct justice. "Yet, in today’s world, negativity spreads faster than facts — and as we work through the legal process, I want to re-confirm our absolute commitment to world class regulatory compliance."

Adani reaffirmed the Group's commitment to maintaining "world-class regulatory compliance" standards.

Recounting the past challenges that the conglomerate faced, Adani said, "while we have had our successes, our challenges have been even bigger. However, these challenges have not broken us. Instead, they have defined us. They have made us tougher and give us the unshakeable belief that after every fall, we will rise again, stronger, and more resilient than before."

In 2010, as the Adani Group embarked on a monumental project to invest in a coal mine in Australia, the objective was clear: To make India energy secure by replacing every two tons of poor-quality Indian coal with one ton of high-quality coal from Australia.

However, this vision was met with resistance from NGOs, leading to a decade-long struggle, he said. In fact, the resistance was so pronounced that the group was forced to fund the entire $10 billion project through its own equity.

"We now have a world-class operating mine in Australia, and it could be seen as a great sign of our resilience," said Adani. The decision to entirely self-fund also meant that the company lost out on over $30 billion in debt financing that could have been allocated to its green energy projects, he said.

The challenges did not end there. In January 2023, just as the Adani Group was preparing to launch its Follow-on Public Offering (FPO), it faced another formidable hurdle: a short-selling attack originating from abroad.

"This was not a typical financial strike; it was a double hit — targeting our financial stability and pulling us into a political controversy," the chairman said. "All of this was further amplified by certain media with vested interests. But even in the face of such adversity, our commitment to our principles remained strong."

Despite the turmoil, the Adani group remained steadfast in its principles.

Following the successful raising of Rs 20,000 crore from what was touted as India’s largest-ever FPO, Adani made an extraordinary decision to return the proceeds.

"We then further demonstrated our resilience by raising capital from several international sources and proactively reducing our Debt to EBITDA ratio to below 2.5 times, an unmatched metric in the global infrastructure space," the chairman said. Moreover, the group's all-time record financial results in the same year showcased its commitment to operational excellence.

"Not a single Indian or foreign credit rating agency downgraded us," said Adani, adding that "finally, the Supreme Court of India’s affirmation of our actions validated our approach".

As the Adani Group moves forward, its chairman remains confident of challenging the "status quo" and emerge stronger.

"I have come to accept that the roadblocks we face are the price of pioneering. The bolder your dreams, the more the world will scrutinize you. But it is precisely in that scrutiny that you must find the courage to rise, to challenge the status quo, and to build a path where none exists. To pioneer is to embrace the unknown, to break limits, and to believe in your vision even when the world cannot yet see it," he concluded.

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