Adani succession plan: Group says Gautam Adani misquoted on heirs, equal beneficial interest in family trust

Adani Enterprises on Wednesday issued a clarification on Gautam Adani's succession plan. The company cleared that air around Adani Group Chairman Gautam Adani retirement plan and said he was misquoted concerning heirs and equal beneficial interest in the family trust.

In an official statement, the company said: “We would like to clarify that, in a recent interview, Mr Gautam Adani shared his thoughts on succession planning to ensure business sustainability. He said that succession is not just one event, but a journey and that it must be organic, gradual and systematic. Mr. Adani did not specify any date or point in time.”

The statement further said: "Mr Adani has been misquoted about heirs and equal beneficial interest in the family trust. He had mentioned the involvement of his two sons and two nephews in various businesses of the group.”

The company in its statement also said, "We would further like to submit that the share prices are purely market driven and the management of the Company neither has any control nor has any knowledge of any specific reason for the movement in the price of shares seen yesterday. It is worth noting that share market itself saw a correction of approximately 3 per cent yesterday."

On Monday, Bloomberg reported that Adani, 62, plans to step down from the business at 70. The report said the business will be divided amongst four successors -- Gautam Adani’s sons Karan and Jeet Adani and their cousins Pranav and Sagar Adani. Pranav Adani is the son of Vinod Adani whereas Sagar Adani is the son of Rajesh Adani. All four of them are named heirs through a family trust, the report said.

Pranav Adani (45), Karan Adani (37), Sagar Adani (30), and Jeet Adani (26) occupy prominent roles within various sectors of the Adani Group. 

Adani is currently the second richest man after Mukesh Ambani according to Bloomberg’s Billionaire Index. In the interview, Adani told Bloomberg that said his four heirs will deliver. "I am happy that all of them are hungry for growth, which is not common in the second generation," he said. "They have to work together to build a legacy."

Adani's brother, Rajesh Adani, plays a pivotal role within the Adani Group, and his sons hold key positions contributing to the group's operations and success. Pranav is responsible for overseeing a significant portion of the group's consumer-related ventures, which encompass consumer goods, gas distribution, media, and real estate sectors. On the other hand, Sagar manages the group's energy business and financial undertakings. Notably, Sagar is actively involved in enhancing the market analyst coverage for the conglomerate's entities, a proactive approach uncommon among businesses of such substantial scale.