Grounded truckers transporting cement from Adani's factories in Himachal Pradesh have sighed a relief after the latter resolved the dispute and the transporters thank the Hindenburg Research Report as a godsend to save their livelihoods.
Around 7,000 truck owners and drivers in India's Himachal Pradesh have resorted to protest against Adani's Dec. 15 decision to shut two cement plants over a dispute on freight rates, reports Reuters.
Adani Group maintained that the two cement plants were "unviable" at the trucking rates and wanted to slash it by around half. However, after the rout in markets for their shares, the Adani Group on Monday said it had "amicably resolved" the issue with a 10-12% reduction in rates.
Truckers rejoiced, with a union leader in a street address labelling it as a victory after late-night talks with Adani. The settlement comes four weeks after U.S.-based Hindenburg Research accused Adani of stock manipulation and improper use of tax havens, allegations the group called baseless.
The Jan. 24 report triggered a $140 billion rout in group's stocks, sparked regulatory investigations and saw the billionaire Adani slip to 26 on the Forbes global rich list, from third.
While the truckers' settlement will have only a small impact on the overall Adani empire, it was a big win for the drivers and owners in a state.
The Hindenburg report "played a crucial role in our battle against the India's biggest business group, helped mobilize truckers and gain political support," said Ram Krishan Sharma, one of the negotiators for truckers.
(With inputs from agencies)
