The Gautam Adani-led Adani Group and Mukesh Ambani’s Reliance Industries have reportedly entered into an agreement not to hire talents from each other. According to a Business Insider report, the no-poaching agreement came into effect from May this year and applies to all of their group companies.
Neither Adani Group nor Reliance Industries have commented on or confirmed the claims made in the report.
No-poaching agreements between companies in India are not new.
“These pacts have always existed and are still informal in nature. From now on, the two groups can no longer bully each other,” a senior professional at a global executive search firm that works with both conglomerates told Business Insider.
Both groups are present in different sectors and are rivals in some sectors.
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 the top player.
The two companies have also grown closer in telecom. In the recently closed 5G auctions, Reliance Jio Infocomm, the world’s third largest mobile network operator, emerged as the largest bidder. Adani Group, which entered the auction for the first time, purchased 400MHz spectrum for Rs 212 crore.
Adani Group and Reliance Industries recently announced plans to make major investments to boost their retail operations. According to a recent Bloomberg report, Adani Wilmar Limited, the food products company owned by the Adani Group, has set aside Rs 5 billion from its initial public offering for acquisition targets to boost its food business. Recently, Reliance Industries also announced its plans to start a consumer goods company.
Gautam Adani first pushed Reliance Industries chairman Mukesh Ambani to the second position in India’s rich list with a wealth of Rs 10,94,400 crore, according to the IIFL Wealth Hurun India Rich List 2022.