Meanwhile, both Adani Group and Reliance Industries have yet to comment or confirm the claims made in the report. A ‘no poaching agreement’ is not a new phenomenon among companies in India. Both groups operate in all sectors and are even rivals in some industries. Apart from this, Adani and Ambani Group have entered into a new deal as the moonlighting element in the Information and Technology (IT) sector is increasing.
Timing of the contract is important
According to a report, the agreement was signed in May this year and will be applicable to all businesses of the two companies. Competition between the two groups is gradually increasing. Adani Group is now slowly making inroads into businesses where Reliance Group is already a big name. The biggest example of this is last year’s entry of the Adani group into the petrochemicals sector with ‘Adani Petrochemicals Limited’, in which Reliance Industries has already been the largest player in the country for years.
Adani Group is also a major player in power, ports, airports, renewable energy and solar energy sectors. While the Adani Group has recently entered the petrochemicals segment, where Reliance Industries already operates.
What is the reason behind the agreement?
Besides, the Adani Group recently bid for 5G spectrum, with Reliance’s Reliance Jio Infocomm becoming the largest player in the country. In fact, both the groups have signed this agreement to stop the talent war between the companies. The Adani Group participated in the auction for the first time and bought 400 MHz spectrum for Rs 212 crore. Besides, Adani Group and Reliance Industries have recently announced plans to invest heavily in boosting their retail businesses.
The problems of employees will increase
On the other hand, after this agreement between the two companies, 3.80 lakh employees working in Mukesh Ambani-led Reliance companies will not be able to work in Adani group companies at present. Apart from this, companies of Adani group which have more than 23 thousand employees, cannot be employed in any company of Mukesh Ambani.