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One of Asia's richest men said the next generation is ready to take over his sprawling company — but it won't happen for at least eight years.
Gautam Adani, 62 years old, announced his intention to retire at 70 from the Adani Group, Bloomberg reported on Monday.
Founded in 1988, the Adani Group has substantial interests in energy, logistics, and infrastructure and aims to make India "a significant player in sustainable energy, and self-reliant in defence and security," according to a profile on the company website.
According to the Bloomberg Billionaires Index, Adani Enterprises, the group's main company, reported revenue of $11.6 billion in 2024, and Adani himself owns a 75% stake.
Adani's retirement paves the way for his sons and nephews to take over the sprawling family conglomerate by the early 2030s. The transition will occur gradually, and Adani's successors will run the company collectively, he told Bloomberg.
Most Asian family business leaders are not keen on retirement, leading to what family business professor Marleen Dieleman called "King Charles syndrome," where the next generation takes over past its prime.
Gautam Adani stepping aside early is a positive sign, said Dieleman, who works at IMD Business School in Switzerland.
"It is good to see this level of planning and preparation," Dieleman told Business Insider.
Karan Adani, Gautam's elder son, will oversee cement, ports, and logistics, while Jeet Adani, the younger son, will handle airports, digital ventures, and defense. Nephews Pranav and Sagar will manage consumer businesses, communications, energy, and finance. Adani has not yet announced a successor for chairman, Bloomberg reported.
While Adani's public announcement of the transition sets a positive precedent for other family-run companies, the move would ideally come with safeguards against conflicts that might arise from having four leaders steering the company.
"This can be done by agreeing on the larger aspirational aspects of the family legacy rather than on the question of who gets what and what is fair," Dieleman told BI.
Placing non-family experts in key positions is also crucial in bolstering the transition process. A company the size of the Adani Group requires several stages of leadership, "which comes from a mix of non-family and family professionals," said Dieleman.
The leadership transition comes amid significant controversies for the company. In January 2023, the Adani Group was accused by Hindenburg Research, an activist short-seller investment firm, of financial misconduct, leading to a substantial decline in the company's market value. Additionally, the company was also investigated by the US Department of Justice for potential bribery involving Adani entities, which the company had denied, Bloomberg reported in March. No charges have been filed.
Adani's wealth surged in 2022 and made him the third richest person in the world at the start of 2023. However, following the allegations from Hindenburg Research, his fortune declined by more than a quarter. Adani currently sits at the 12th spot for richest person in the world, behind the richest man in Asia, Mukesh Ambani, according to the Bloomberg Billionaires Index.
The Adani Group did not respond to requests for comment.
