INDIA: Gautam Adani-led Adani Group and Mukesh Ambani’s Reliance Industries have reportedly agreed not to hire talent from each other. According to a Business Insider report, the no-poaching agreement went into effect in May of this year and will apply to all companies in their group.
Both Adani Group and Reliance Industries have not commented or confirmed the claims made in the report. No-poaching agreements between companies are not new in India.
“These pacts have always existed and continue to be informal in nature. From there, the two groups can’t poach each other,” one senior professional at a global executive search firm that works with both conglomerates told Business Insider.
Both groups operate across sectors and compete in several industries.
The Adani Group is a major player in the energy, ports, airports, renewable energy and solar energy sectors. The Adani group has recently entered the petrochemical segment where Reliance Industries is a leading player.
The two companies have also become closer in telecommunications. In the recently concluded 5G auctions, Reliance Jio Infocomm, the world’s third-largest mobile network operator, emerged as the biggest bidder.
Adani Group, which participated in the auction for the first time, bought 400 MHz spectrum for ₹212 crores. Adani Group and Reliance Industries recently announced plans for major investments to boost their retail businesses.
According to a recent Bloomberg report, Adani Wilmar Limited, the food company owned by the Adani Group, has earmarked ₹5 billion from its initial public offering for acquisition targets to strengthen its food operations. Recently, Reliance Industries also announced its plans to start a consumer goods business.
Gautam Adani has moved Reliance Industries chairman Mukesh Ambani to second place in India’s rich list for the first time with a fortune of ₹10,94,400 crore, according to IIFL Wealth Hurun India Rich List 2022.