New Delhi: The Adani Group has entered into a non-poaching agreement with Mukesh Ambani’s Reality Industries, after which the two companies will be restricted from hiring talent from each other.
The agreement is effective from May 2022 and will be applicable to all of their businesses. This agreement becomes even more interesting as two of India’s largest business groups have entered sectors in which each plays a significant role.
Adani and Reliance compete in the petrochemical sector where the latter has a large presence. It also intersects in high-speed data services as Adani has made its bid for the 5G Spectrum.
No poaching conventions have always been practiced in India and are becoming more and more widespread. Rising wages are a danger to the company especially when talent is scarce and salaries are constantly rising. Poaching agreements are not legal as long as they do not restrict an individual’s right to seek employment.
There is no such law that would prevent two entities from entering into such agreements as long as they are not dominant in the sector. The Adani Group is a major player in renewable energy, power generation and distribution, ports and airports, solar energy as well as natural resources.
Given that both Adani Group and Reliance have global ambitions in several companies, this agreement allows them to fence off their talent pools both in India and abroad.
Read also: Meet Neha Narkid, India’s youngest self-made businesswoman on Huron Rich List
Most of these agreements are informal. But the entry of two large companies into such an agreement may be restrictive for employees. Mukesh Ambani (net worth $88.8 billion) and Gautam Adani ($150 billion) represent 59 percent of the wealth of India’s top 10 billionaires.
On the other hand, the market capitalization of Reliance is Rs 16,94,143 crore. The market value of Adani Group is Rs 21,28,656 crore.
The Adani Group and Reliance Industries have shown off their talents, and they have signed a non-poaching agreement for the first time on Indiaahead News.