Fact- Adani is full of jhol and he has f*cked around with the system using crony capitalism
Also fact- he's not a dubma$$ and is backing up his business with strong strengths. Look at ports for instance- he really has thought out logistics as long term advantage.
The above actually makes him rather dangerous.
You know the same allegations was made against Dhirubhai Ambani when he was building Reliance Industries.
Today the same allegations are made on Adani.
Fact - Adani did not create this "system". He just used the existing system to build himself and his business. If the system requires one to act in a certain way, then pragmatic people do whatever they need to do to become successful.
Not Because OF the system, but DISPITE the system.
Its not Adani who rides on the coattails of Modi, its politicians like Modi who ride on the coat tails of Adani and boasts of "Atmanirbhar bharat".
You are right that small business men cannot do this, but that is NOT Adani's fault. He started out small too. Its the policy makers fault. Business men just adapt to whatever policy they are forced to deal with.
Let me give you two example of what Adani did for "Modi". Do you know why Food inflation in India is Low ? While its sky high in the rest of the world ? Its because Adani Food venture ensures supply at low prices and low margins, relying on Quantity to make up for revenues. Adani Wilbur for example has ensured the price of cooking oil remains low in India despite global shortage. This however makes it unprofitable for small businessmen to make a killing in the market.
Another example is when the Major cement companies formed a Cartel to rig prices of cement due to massive demands during Infrastructure building, Adani brought Ambuja cement and ACC, thus making it the second largest cement player in the Indian market. This ensured that the prices were stabilized thus enabling the govt. to continue to build infrastructure at resonable prices.
Look at the cart of cement prices without Adani,
Now look at the cement prices between large brand. Ambuja and ACC are owned by Adani,
| Cement Brand | Price per 50 kg bag |
|---|
| Ambuja Cement | Rs 330 |
| ACC Cement | Rs 370 |
| Birla Cement | Rs 375 |
| JK Laxmi Cement | Rs 390 |
So this "Crony capitalism" is a two way street. Of course Adani could very well hike up the prices for both Edible oil and cement and make a killing, but he doesn't. At least no as long as Modi is in power.
What do you think will happen in congress rule ? Adani will be forced to hike the prices and pay a cut to the Congress.
So while its easier to blame Adani, No one wants to really blame the Congress, the judges, the bureaucrats and the System they built to promote crony capitalism.
I really don't blame outsiders like Hindenburg who similarly seeks to exploit the "system", but I definitely blame Indians who are deliberately blind to the reality, their judgment clouded by political consideration or deliberate misinformation.
