India’s richest men drop out of $100B wealth club

By Dat Nguyen December 16, 2024 | 12:54 am PT

The two richest men in India, oil tycoon Mukesh Ambani and industrial infrastructure tycoon Gautam Adani, have both seen their wealth plunging to below $100 billion this year amid business challenges.

Ambani, chairman of conglomerate Reliance Industries – which has interests in energy, retail and entertainment – has seen his wealth plunging 20% in the last five months to $96.7 billion, according to Bloomberg.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company's annual general meeting in Mumbai, India July 5, 2018. Photo by Reuters

After reaching a peak of $121 billion in July, the net worth of the richest man in Asia began to drop as his corporate struggled with weakened earnings.

Sales and profit growth of his retail business have been sluggish as competitors expand quickly in India’s top cities.

Analysts say that the oil-to-chemicals business is under pressure from falling demand and Chinese exports.

"Reliance remains a strong wealth creator and each business has great value. But the pressure on the oil business has caused the stock to underperform," said Kranthi Bathini, equity market strategist at Mumbai-based WealthMills Securities Pvt.

Reliance shares have dropped 1.9% year-to-date and is hovering around a one-year low.

Meanwhile, Adani, founder of Adani Group, has been facing legal issues after U.S. prosecutors accused him of bribery in November.

Gautam Adani in Ahmedabad, India, April 2, 2014. Photo by Reuters

His net worth has dropped 33% to $82.1 billion from this year’s peak in June.

While Adani has denied allegations, his business empire, which operates ports and electricity generation transmission systems, has seen shares plunging as investors express a lack of confidence in its recovery.

Shares of Adani Energy Solutions have plummeted 23% year-to-date, while those of Adani Power have declined by 39% from this year’s peak in June.

Both tycoons are set to see increasing headwinds in 2025 as the U.S., under Donald Trump, is expected to slap stronger tariffs on Indian exports.

"In the short term there are challenges, especially with Trump imposing tariffs that’s going to make India’s exports not that competitive," said V.K. Unni, a professor at the Indian Institute of Management Calcutta, as quoted by Bloomberg.