Hindenburg’s report on the Adani group is a godsent for Indian truckers delivering cement from the business empire’s factories in a hilly north Indian state. Truckers claim the US research firm’s report has helped them salvage their livelihoods.
Some 7,000 truck owners and drivers in India’s Himachal Pradesh have been holding protest marches for weeks in response to Adani group’s decision on December 15 to close two cement factories due to a dispute over travel costs.
The Adani group wanted to cut trucking rates by around half as the business empire claimed the factories were “unviable” otherwise.
On Monday, the Adani group said the trucker issue was “amicably resolved”, with the travel rates cut by 10-12%. After late-night negotiations with Adani, truckers celebrated, describing the settlement as a success.
That resolution to the dispute comes four weeks after a damaging report by Hindenburg accused the Adani group of improper use of tax havens and stock manipulation.
Shares of the apples-to-airports group firms have taken a hammering since that report on January 24th. The market bleeding erodes the group stocks’ wealth of around $140 billion.
Although the truckers’ settlement will only have a little impact on the business empire, it is a significant victory for truckers, where most workers make less than 7 dollars per day.
Ram Krishan Sharma, one of the chief mediators on behalf of the truckers’, said the Hindenburg report “played a crucial role in our battle against India’s biggest business group, helped mobilize truckers and gain political support”.
For several weeks, Adani’s negotiators did not budge. With the latest resolution, some truckers think Hindenburg’s report was “godsent”.
Hindenburg’s report is the best for Adani
Separately, in a media column, economist Swaminathan S Anklesaria Aiyar argues that the Adani group will benefit by slowing its “breakneck speed” of expansion. Aiyar says the Hindenburg report might be the “best thing” that has ever happened to billionaire Gautam Adani.
He believes the latest accusations and the market rout might instil financial discipline within the business empire.
The economist rejects the claim – frequently made by opposition parties – that Gautam Adani amassed his wealth through political favouritism and manipulation. He noted, “I disagree. Going from humble origins to global number three in two decades is impossible without exceptional business skills.”
Aiyar believes what Hindenburg did ‘to Adani’ is the best thing anyone could have done ‘for Adani’.
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