The Adani Group founder and chairman turns 60 on Friday.
“In addition to being the 100th birth anniversary of my inspiring father, this year also happens to be the year of my 60th birthday and therefore the family decided to contribute ₹ 60,000 crore towards charitable activities related to healthcare, education, and skill development, especially in the rural regions …, “Adani said in a statement.
The Adani Foundation – helmed by Adani and his immediate family – will administer the corpus.
- Adani likely to model pledge on the same lines as the Azim Premji Foundation
- Adani Foundation plans to enlist sectoral experts to lead each initiative
- A portion of the promoter’s stake from the group’s seven listed companies is likely to be apportioned to the Adani Foundation
While Adani is the president, his wife Priti Adani is the chairperson of the foundation.
Adani is already among the top philanthropists in India.
Last year, he shared the eighth spot with
Group chairman Anil Aggarwal on the EdelGive Hurun India Philanthropy List with donations of ₹ 130 crore, according to media reports.
Other people on the list included leading industrialists Azim Premji, Shiv Nadar, Mukesh Ambani, Kumar Mangalam Birla and Nandan Nilekani, in that order.
About 9% of Adani’s Net Worth
founder-chairman Azim Premji is regarded as one of the most generous philanthropists from India.
He is a signatory to the Giving Pledge, an initiative by Bill Gates and Warren Buffet that encourages wealthy individuals to pledge half of their wealth to philanthropy.
In 2021, Premji donated about ₹ 9,713 crore, according to the EdelGive Hurun India Philanthropy List. In 2020, he provided ₹ 7,904 crore.
“Gautam Adani and his family’s commitment towards philanthropy should set an example that we can all try to live Mahatma Gandhi’s principle of Trusteeship of Wealth at the peak of our business success and need not wait for our sunset years,” Premji was quoted saying in the statement by Adani.
A source close to the Adani Group said Adani is likely to model his philanthropy pledge on the same lines as the Azim Premji Foundation and other global charities of comparable scale and size.
A portion of the promoter’s stake from the group’s seven listed companies is likely to be apportioned to the Adani Foundation.
A spokesperson for the Adani Group did not respond to ET’s queries on how the corpus would be created.
A back-of-the-envelope calculation shows that the ₹ 60,000 crore pledge is about 9% of Adani’s net worth of ₹ 7.16 lakh crore as of Thursday, according to the Bloomberg Billionaires Index.
Adani, who built the group ground up in infrastructure spanning ports, power, transmission, and renewable energy, explained why he chose education, skill development and healthcare.
“At a very fundamental level, programs related to all these three areas should be seen holistically and they collectively form the drivers to build an equitable and future-ready India,” Adani said. “Our experience in large project planning and execution and the learnings from the work done by the Adani Foundation will help us uniquely accelerate these programs.”
The Adani family’s commitment is in addition to the Corporate Social Responsibility proceeds made by group entities.
Applauding Adani’s decision, Harsh Goenka, RPG Group chairman tweeted: “#GautamAdani joins the list of philanthropists by committing to donate 600 billion rupees ($ 7.7 billion) to a variety of social causes to mark his 60th birthday. This indeed is a wonderful move @ gautam_adani. He joins the list of legendary givers Ratan Tata, Azim Premji … ”
“I am very touched by Gautambhai’s commitment on a very important milestone in his life – his 60th. I have always admired him for his deep family values and commitment to see India prosper,” said Uday Kotak, managing director of
in a separate message.
“People who allocate such large amounts must have a clear vision and strategy to use it effectively. Also, it helps build social commitment in the family members,” said Kavil Ramachandran, professor of family business and entrepreneurship, senior advisor, Thomas Schmidheiny Center for Family Enterprise, at the Indian School of Business, acknowledging Adani’s “great gesture”.
Business families that have spawned such philanthropic charities have often enlisted professionals and sector specialists to help them build a sustainable model.
Tata Trusts in India has built a legacy in philanthropy. The Azim Premji Foundation is another example of philanthropic initiatives built to last generations. The Adani Foundation, too, proposes to enlist sectoral experts to lead each initiative.
“… The positive message is about the need for Indian corporations to take philanthropy more seriously and develop comprehensive developmental strategies,” Ramachandran added.
Adani has added close to $ 30 billion to his wealth this year, in the process of becoming India’s richest and sixth wealthiest in the world.
He has also been busy adding to his portfolio of businesses.
In May, Adani scooped up ACC-Ambuja Cement for $ 10.5 billion from Swiss-based building materials giant Holcim Group.