Hindenburg report a blessing in disguise to Adani: Swaminathan Aiyar

New Delhi: Economist Swaminathan S Anklesaria Aiyar has said that the Hindenburg report can help bring financial discipline to the Adani Group.

Aiyar argued in his column in The Economic Times that slowing down the ‘breakneck speed’ at which the group had been expanding could benefit it.

"I think the Hindenburg report may be the best thing that ever happened to Adani. It will slow his speed of expansion and diversification and force his financiers to be diligent and cautious in future. This could impose highly desirable financial discipline on Adani, to his own benefit," he said in the column.

In the context of Adani’ crisis, Aiyar reminisced what Winston Churchill told his wife after his post-war electoral defeat ‘a blessing quite effectively disguised’.

Swaminathan Aiyar said that he might buy Adani Shares one day but he did not own any as of now because of ‘high prices and high risk’.

Describing the situation at Adani Group, Aiyar said Adani had been ‘diversifying and expanding at breakneck speed’ with borrowed money, bidding high prices in auctions and acquisitions.

This move according to him leads to fast expansion but is saddled with ‘great risks’.

He dismissed criticism by Opposition parties against Adani of using manipulation and political favours to gain riches.

Becoming the third richest in two decades rising from humble origins is impossible without exceptional business skills, he said.

Refuting the criticism that ruling BJP gave valuable assets to Adani, Aiyar said Adani was initially given only the right to operate a minor port without a rail connection in Kutch desert.

Aiyar called the transformation of the ‘desert patch’ into India’s largest port ‘miraculous’ which seemed to him ‘another planet’ after visiting the place.

He also said that no Indian rival of Adani would dare risk $750 million for Sri Lanka terminal and $1.18 billion for Haifa Port even if they are offered on a platter.

The economist further pointed out that businessmen cosy up to politicians but that will not guarantee success.