In a historic move, Mukesh Ambani's Reliance Industries has acquired a 26 percent stake in a power project located in Madhya Pradesh, owned by Gautam Adani. Additionally, they have inked an agreement to utilize the plant's 500 MW electricity for their own needs.
Under the agreement, Reliance will purchase 5 crore equity shares in Mahan Energen Ltd, a subsidiary of Adani Power Ltd, at a face value of Rs 10 each, totaling Rs 50 crore. This deal was disclosed through separate filings with the stock exchanges by both companies.
These two business magnates, originating from Gujarat, have often been portrayed as rivals by the media. However, despite this perceived competition, they have managed to ascend to the top echelons of Asia's wealthiest individuals. While Ambani's business interests span across various sectors such as oil and gas, retail, and telecom, Adani has focused on infrastructure, including sea ports, airports, coal, and mining. They have only intersected in the clean energy sector, where they have announced substantial investments.
Adani aims to become the world's largest producer of renewable energy by 2030, while Reliance is constructing four gigafactories in Jamnagar, Gujarat, dedicated to solar panels, batteries, green hydrogen, and fuel cells. Furthermore, Adani is establishing three giga factories for the manufacturing of solar modules, wind turbines, and hydrogen electrolysers.
Although there were predictions of conflict, especially when Adani Group expressed interest in participating in the auction for 5G spectrum, the reality has been quite different. Adani acquired 400 MHz spectrum in the 26 GHz band, which is not intended for public networks, unlike Ambani's acquisition.
Surprisingly, the relationship between the two conglomerates has been quite harmonious. In 2022, a company previously associated with Ambani sold its stake in the news broadcaster NDTV to Adani, facilitating a smooth takeover. Additionally, Adani was a guest at the pre-wedding festivities of Ambani's youngest son, Anant, held at Jamnagar earlier this month.
