29 March 2024 – In a surprising move, Mukesh Ambani, through his conglomerate Reliance, has acquired a significant 26% stake in a power project owned by Gautam Adani’s Adani Group. This marks Ambani’s first-ever investment in the Adani conglomerate, signaling a potential shift in their business dynamics. The deal entails Reliance acquiring 5 crore equity shares of Mahan Energen Ltd, a subsidiary of Adani Power Ltd, for a total value of Rs 50 crore. Additionally, Reliance has inked a pact to utilize 500 MW of electricity from the power plant for captive consumption.
Traditionally, Adani and Ambani have operated in distinct sectors, with Adani focusing on infrastructure projects spanning coal, mining, ports, and airports, while Reliance’s interests lie in oil, retail, and telecommunications. However, both conglomerates have recently ventured into clean energy initiatives, aligning with global sustainability goals. Adani aims to become the world’s leading renewable energy producer by 2030, while Reliance is investing in gigafactories for fuel cells, batteries, solar panels, and green hydrogen.
Despite their divergent business interests, Adani and Ambani have embarked on this strategic collaboration amidst growing competition and evolving market dynamics. Notably, Adani’s spectrum acquisition for 5G services and Ambani’s investments in media further underscore the complexity of their relationship. However, this investment signifies a new chapter in their business interactions, with both conglomerates poised to capitalize on emerging opportunities in India’s dynamic market landscape.
The long-term power purchase agreement between Reliance and Adani’s Mahan Energen Ltd reflects a mutually beneficial arrangement for both entities. By leveraging Adani’s power generation capabilities and Reliance’s captive user policy, the deal enhances operational synergies and reinforces their commitment to sustainable growth. As the transaction awaits regulatory approvals, it heralds a new era of collaboration between two of India’s wealthiest industrialists.
