DARLAGHAT, India Feb 23 (Reuters) – For trucks hauling cement from Adani’s factories in a hilly northern Indian state, a critical research report by a U.S. short-seller on the giant conglomerate is a blessing they say has helped them save their livelihoods.
For weeks, nearly 7,000 truck owners and drivers in India’s Himachal Pradesh have turned to protest rallies against Adani’s Dec. 15 decision to close two cement plants over the dispute. of freight charges. Adani argued that the plants “cannot survive” on the trucking rates it wants to cut by almost half.
On Monday, the Gautam Adani-led group said it had “satisfactorily resolved” the issue with a 10-12% reduction in rates. Truckers are jubilant, with one union leader at a street address branding it a victory after late-night talks with Adani.
The settlement comes four weeks after US-based Hindenburg Research accused Adani of stock manipulation and improper use of tax shelters, allegations the group called unfounded.
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The January 24 report caused a $140 billion loss in the group’s stocks, sparked regulatory investigations and saw billionaire Adani fall to 26 on the Forbes global rich list, from third.
While the trucking settlement will have little impact on Adani’s overall empire, it is a big win for drivers and owners in a state where most people live on around $7 a day .
The report “played an important role in our fight against India’s largest business group, helping to mobilize trucks and gain political support,” said Ram Krishan Sharma, one of the lead negotiators. for the protesting trucks.
Adani negotiators refused to act for weeks. So Hindenburg’s report, some trucks believe, is a godsend.
Just a day before this was published, several trucks visited a small, revered Hindu temple in Darlaghat overlooking one of Adani’s cement plants, and offered a traditional semolina tam -is an offering to a god as they seek to settle a dispute.
Bantu Shukla, a protest leader, showed Reuters a photo and video of trucks that day praying inside the temple. Others stand with folded hands, while a man rings the temple bell in a typical Hindu worship ritual.
‘GOOD RESOLUTION’
The Adani Group did not respond to Reuters’ queries on whether the fallout from the Hindenburg report contributed to its Himachal decision.
Adani Cements in a statement said it was “grateful” to all stakeholders including the unions, the chief minister of the local state and other departments, and added the “good resolution” in the interest of all including the state.
A source familiar with Adani’s negotiations said the group was under pressure following what it perceived to be a “negative campaign” by Adani’s rivals following the Hindenburg report, and the settlement opening again the plants are a relief.
Himachal is ruled by Prime Minister Narendra Modi’s arch rival, the Congress party. After the Hindenburg report, the Congress renewed its claims that Modi over the years had excessively favored Adani. Adani and the Indian government deny that.
The source added that the move would also help Adani signal that it could resolve trade issues in states ruled by Modi’s opponents.
Without citing Hindenburg, the Himachal chief minister’s office on Monday said “we have succeeded in resolving the issues” to end the 67-day dispute.
WHATSAPP CHAT, PRAYER IN THE TEMPLE
Adani became India’s second-largest cement maker when it acquired ACC ( ACC.NS ) and Ambuja Cements ( ABUJ.NS ) in a $10.5 billion deal with Swiss giant Holcim ( HOLN.S ) last year year.
In December, it shut down plants in Gagal and Darlaghat villages in Himachal, saying the trucks were charging too much.
The Adani group wants to lower it to 6 rupees ($0.0725) per ton per km, from 11 rupees. Many truckers told Reuters they were struggling to make their loan payments because their profits had dropped following the closures.
As the stalemate worsened, truckers formed WhatsApp groups to coordinate efforts, vent frustration and later share the Hindenburg effect on Adani companies and stock prices to drum up support.
One of the chats in the WhatsApp group of nearly 1,000 truckers, reviewed by Reuters, showed the sharing of a video of a local journalist discussing the sharp fall in Adani’s shares and his alleged close relationship with Modi.
Although they accepted a slight reduction in freight rates when Adani agreed to pay 9.3-10.58 rupees per km per tonne, the truckers felt they had saved their jobs, and the prayers at the Hindu temple was reorganized this week.
“We felt our god accepted our prayers when we saw the fall in share prices of Adani companies,” said protest leader Shukla. “The Hindenburg report was a gift that saved our businesses.”
(This story has been refiled to remove unnecessary wording in paragraph 20)
Reporting by Manoj Kumar, Aditya Kalra and Anushree Fadnavis; Editing by Lincoln Feast.
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