Indian truckers say Hindenburg report is godsend in Adani dispute

• India’s Adani reopens two cement plants after a freight dispute.
• Truckers believe the Hindenburg report was the answer to their prayers.
• Adani says an amicable resolution was reached after negotiations.

A U.S. short-negative seller’s research report on Adani‘s facilities in a hilly north Indian state was a godsend for truckers delivering cement from Adani’s mills, who believe it helped them salvage their livelihoods.

For weeks, about 7,000 truck owners and drivers in India’s Himachal Pradesh staged protest demonstrations in response to Adani’s Dec. 15 decision to close two cement factories due to a freight rate disagreement. Adani said the facilities would be “unviable” if trucking prices were cut by half.

On Monday, the Gautam Adani-led group announced that it had “amicably addressed” the problem with a 10-12% tariff decrease. Truckers celebrated, with a union official declaring victory in a street address following late-night discussions with Adani.

The agreement came four weeks after Hindenburg Research, based in the United States, accused Adani of stock manipulation and improper use of tax havens, which the group dismissed.

The Jan. 24 news provoked a $140 billion drop in the group’s price, prompted regulatory inquiries, and saw billionaire Adani fall to 26th on Forbes’ global rich list, down from third.

While the truckers’ settlement may have only a minor influence on Adani’s overall empire, it was a significant victory for the drivers and owners in a state where most people live on less than $7 per day.

The report ” played a crucial part in our battle against India’s biggest business group, helped mobilize truckers, and gain political support,” according to Ram Krishan Sharma, one of the protesting truckers’ lead negotiators.

Also Read

Adani: India’s watchdog is investigating into claims of Hindenburg fraud

SEBI is looking into charges made by Hindenburg Research. SEBI is also...