SFO -Join The Trillion USD Market Cap Wealth Portfolio Program ™

• At SFO we have applied the following principles while helping Ambani, Adani and scores of other Family Offices worldwide in their journey towards joining the Trillion USD Market Cap Club ™ .

• The long-term success of a family ultimately rests with the ability of the younger generation to find its place and voice so that it can continue the family legacy while also stewarding and creating wealth._
• To do this, the ultra-affluent must determine a way to provide the Next Generation with the opportunity, tools and encouragement to develop.
• Communication + Education = Empowerment. That is the formula for a thriving Next Generation.
• Within your wealth portfolios Long Term Value Creation Through Competitive Impact that your company/companies engages in shall drive the Economies Of Scale you can build.
• Understanding what the societies need in the geographies you operate is the First Step towards creating Competitive Impact. We have with us the future society needs compiled guided by our association with UN, WEF, World Bank etc.
• Understanding what the governments need in the geographies you operate is the Second Step towards creating Competitive Impact. India will add almost 1 Trillion in GDP every few years till 2050 and beyond. Same opportunity in GDP / Gross Value Add we have compiled while advising  every Country, State, Province, Municipality, Constituency, County etc for ready deployment.
• Understanding what needs to be accomplished for a family to prosper into the above future is a third step towards creating Competitive Impact. We have with us the most profitable opportunities, scenarios, business models, revenue models and our investments in every sector of every geography for you to scale into.
• Are you preparing your journey into the Trillion USD Club ? SFO is here to help you with Opportunities and Competitive Impact Investments. Join our Trillion USD Market Cap Wealth Portfolio Program today. 

• Just a handful of publicly-traded companies have managed to achieve $1 trillion or more in market capitalization—only seven, to be precise.
• We pull data from Companies Market Cap to find out which familiar names are breaking the 13-digit barrier—and who else is waiting in the wings.

The Major Players in the Game

• Apple, Microsoft, and Saudi Aramco are the three companies to have shattered the $2T market cap milestone to date, leaving others in the dust. Apple was also the first among its Big Tech peers to ascend to the $1 trillion landmark back in 2018.

Company	Valuation	Country	Age of company
Apple	$2.46T	U.S.	45 years (Founded 1976)
Microsoft	$2.31T	U.S.	46 years (Founded 1975)
Saudi Aramco	$2.00T	Saudi Arabia	88 years (Founded 1933)
Alphabet (Google)	$1.84T	U.S.	23 years (Founded 1998)
Amazon	$1.68T	U.S.	27 years (Founded 1994)
Tesla	$1.01T	U.S.	18 years (Founded 2003)

• The largest oil and gas giant—Saudi Aramco is the only non-American company to make the trillion-dollar club. This makes it a notable outlier, as American companies typically dominate the leaderboard of the biggest corporations around the world.

Who Else Might Join the Trillion-Dollar Club?

• Companies with a market capitalization above $500 billion are also few and far between. After Facebook, which until recently was part of the elite trillion-dollar club, Warren Buffet’s Berkshire Hathaway is the closest to joining the Four Comma Club. Though there’s still some ways to go, their market cap of $656 billion means shares would need to appreciate some 52%.

Company	Valuation	Country	Age of company
Facebook	$926B	U.S.	17 years (Founded 2004)
Berkshire Hathaway	$656B	U.S.	182 years (Founded 1839)
TSMC	$619B	Taiwan	34 years (Founded 1987)
Tencent	$589B	China	23 years (Founded 1998)
Visa	$497B	U.S.	63 years (Founded 1958)

• Visa, one of the pioneers of consumer credit in the United States, continues to innovate even 63 years after its founding. In attempts to expand the reach of its already massive payments ecosystem, Visa is experimenting with acquisitions, and even dipping its toes into cryptocurrency with some success.
• Whether the next company to join the trillion-dollar club comes from the U.S., from the tech industry, or out of left field, it’s clear that it has some pretty big shoes to fill.

Indian Economy to Add $1 Trillion Every Few Years Till 2050 

• As part of the ongoing multi-decadal growth super-cycle, India is expected to add a trillion dollar to nominal GDP every few years. This is a trend no investor wants to lose out on.
• Most promising demographics, high quality corporates, deep and efficient financial markets, strong democratic institutions, an improving policy paradigm and GDP per capita that is at the cusp of breaking upwards are some of the factors that SFO believes is attracting foreign investors to the country’s shore again.

Adani Taking Home 1 Tn Of India GDP Targeting 1 Tn Market Cap 

• SFO shall help Adani Group play to its strengths and focus on its core verticals – mining, infrastructure and utilities. Businesses that fit well into the group’s overarching superstructure will become adjacencies like cement, copper and aluminum.
• Adani Enterprises will continue to be the group’s incubator that currently houses new businesses. The Group is looking to hive off some of these new businesses like new energy, airports and roads over the next 2-4 years.
• Whatever you see today, it might look like it has just happened in the last one or two years, but in reality what has been done was discussed in 2015. When the discussion happened, the group’s market cap was around $16 bn in 2015. Given what we had as a set of companies, we believed that if we had assets and companies of that type we should really be a $1 trillion group. So we went through the steps that we needed to take to get to the point.
• Since then, the Adani Group has set about building its infrastructure and logistics portfolio in a manner that it could emerge as the top five globally and not just India’s largest player. To achieve this goal, they took steps to transform the very way the group functioned at every level. We came to the conclusion that a lot of the steps could be executed, When we concluded that we could (execute) these steps, we would know we failed.

Building It Brick By Brick

• While market experts have at times questioned the Group’s foray into cement, the Group is clear that it will play to its strengths and focus on its core – mining, infrastructure and utilities. And businesses that fit well into the group’s overarching superstructure will become adjacencies.
• Given that power and logistics are the largest components of any metals and materials business, the group has seen it fit to enter copper, aluminum and cement businesses. Power continues to be core to the Group’s future growth plans. And to this end, Adani Green is redefining the future of renewable energy. In 2020, Adani Green became the largest solar company in the world. Adani New Industries, which is currently within Adani Enterprises, will focus on the Group’s foray into the new energy business.
• For the first time in India’s history, a portfolio of a group has emerged that is the world’s top five in the entire sector. If you take the infrastructure portfolio of the Adani Group, then the core is among the top 5 in the world. If you take Adani Green, Adani Ports, Adani Total, Adani Transmission and Adani Power are in total among the world’s top five infra portfolios. It is the fastest growing portfolio. The primary industry vertical materials, metal and mining again sits next to our core infra portfolio.
• Not surprising then that Adani Ports and Special Economic Zones (APSEZ) was the first company to undergo a major transformation from being a mere ports operator to becoming an integrated port services and logistics player. Financial year 2021 was a transformational year. No company runs a port business of such scale and reach. The company added LNG and LPG business to the portfolio. In all, Adani’s ports business moves $100 bn worth of trade every year.

Why Entering The Materials Business Makes Sense for Adani?

• The Adani Group emerged as a surprise bidder for Holcim’s cement business in India earlier this year. While many believe it was a foray into an unrelated business, the Group has compelling reasons behind it. Whether it is building materials like paints and cement or metals, 74% of the cost in these businesses comprise of three things – transport and logistics, power and extraction. Cement industry is like any materials industry, where infra and energy are core components.
• Cement is not looked as a manufacturing business. Indian cement industry is horrifically inefficient. And needs efficient logistics and power to grow it. Anyone who has predicted the EBITDA of ACC and Ambuja will be wrong by a factor in the next 9-12 months. The same thing is true for copper and aluminum.
• Given that Adani Group has all the clearances, it can deliver the key raw materials at a better price.The group already is the largest mining services player in the country and which is why it believes that the development cost of its copper smelter would be a third of the cost of any other developer in the country and aluminum would be the same. So when you hear they are buying XYZ, we would like you to see that broadly 100% of Adani investments are core infra or adjacent areas. They do not do anything outside of this.

• Most businesses of the Adani Group enjoy the best in class margins. The ports business has reported operating margins of 70%, while its closest competitor’s margins are at 56%. Adani Total Gas has reported margins of 41%, while Adani Tranmission’s operating margin is at 92%. The businesses are profitable and efficient and generate high levels of free cash flows.
• The growth, is higher than even some tech companies. The group currently generates earnings before interest, tax, depreciation and amortization of $8 bn. Of this $8 bn, approximately $3.6 bn is spent on servicing debt (interest and principal). Of the remaining $4.4 bn, the group spends $700 mn towards tax. Businesses spend $1.8 bn towards capex, while the remaining the group is unable to deploy.
• While in absolute terms the Group’s debt has gone up, but so has its EBITDA. Over the last nine years, the Group’s EBITDA has grown 23% CAGR, while debt has grown by 12%. Nearly 41% of Adani’s portfolio has the same credit rating as that of the Government of India. They are rated higher than the banks so if they keep the money there, then it is a problem for them. Soon enough the group will have a company in its portfolio, with all its business in India, that will be rated higher than the Government of India.

• The Group’s portfolio has evoked interest from global partners like Total Energies and even global funds like International Holding Company. Total Energies has expanded its investment across the portfolio of companies. Total Energies has invested $4 bn across Adani Group companies and it is the French company’s largest single minority position in the world. IHC has also invested $2 bn across group companies.
• The Adani Group has deep relationships with most Indian banks, but since they have group exposure limits, Group Adani cannot grow if it is only dependent on Indian banks. Almost the entire European banking system has relationships with Adani Group along with leading investment banks from the US and Japan. The group has not only raised $16 bn capital in the last three years to fuel growth, but has also run one of the largest equity capital programmes, which is almost the same size as that of Reliance Jio.

• Adani Enterprises has been positioned as the group’s incubator. The group is currently nurturing several new businesses under the aegis of AEL till they become independent and can fund their own capital expenditure plans. The Group believes that it should not be valued on the basis of P/E multiple as its business is the incubation of new businesses.
• For instance, Adani New Industries is the green hydrogen business under AEL for which the Group has committed capex of $50 bn over the next 10 years. Apart from the new energy venture, data centers, airports and the roads businesses will sit inside AEL till they can be independent and support their own growth ambitions. The Group is looking to hive off some of these new businesses over the next 2-4 years.
• To be outside of Adani Enterprises, businesses need to meet two conditions: 1) They can sustain their growth on their own and not need money from shareholders. 2) There can be no financial cross holdings. When a business can stand on its feet, it will be demerged from AEL, explains Singh. In the next 2-3 years, hydrogen, airports and transmission businesses can be demerged when they can be independent. But from the look of it, Adani Group’s transformation is a 25-year story of growth and ambition.

Ambani 1.5 Tn Market Cap Plan 

• Following the succession planning , each child inherits 100 Bn USD business portfolio and the vision is to take each of these to 500 Bn.
• The next move is setting up a family office in Singapore.
• The focus sector  chosen is real estate.
• Ambani is the latest in a series of ultra-rich people to pick Singapore for their family offices — the organizations set up to manage the affairs of wealthy clans — joining the likes of hedge fund billionaire Ray Dalio and Google co-founder Sergey Brin.
• The city-state has become an attractive hub for family offices thanks to its low taxes and relative security. The Monetary Authority of Singapore estimates about 700 were in place by the end of 2021, up from 400 a year earlier.
• Ambani’s move to set up the family office ties in with his larger vision of taking his retail-to-refining empire global and acquiring assets outside India. While announcing the appointment of Aramco’s chairman on the board of Reliance in 2021, the billionaire told his shareholders that this marked “the beginning of internationalization" of his conglomerate, without elaborating. “You will hear more about our international plans in the times to come," he had said at the time.
• Reliance paid $79 million for Stoke Park Ltd. in April 2021, adding an iconic UK locale that’s been the setting for two James Bond films. It also bought an indirect 73.4% stake in Mandarin Oriental New York for $98.15 million in January and an $80 million beach-side villa in Dubai this year.
• The Singapore family office will be running within a year.
• Reliance has been pivoting from its legacy oil refining and petrochemicals business toward e-commerce, green energy and the expansion of its retail footprint across India. In 2020, its technology venture Jio Platforms Ltd. lured more than $25 billion from marquee Silicon Valley investors including Meta Platforms Inc. and Google. It has also unveiled ambitious plans to take on Amazon.com Inc. in the country, including in streaming.