Adani group plans to invest about ₹1.3 lakh crore across its portfolio companies this fiscal as it doubles down on its $100 billion investment guidance over the next 7-10 years to grow businesses, group CFO said on June 25.
The investment across portfolio companies that range from ports to energy, airports, commodities, cement and media will be 70% met through internal cash generation and the remaining through debt, Group CFO Jugeshinder ‘Robbie’ Singh told reporters here.
The group will look to refinance $3-4 billion of debt maturing in the year and raise an additional $1 billion in project financing, he said, adding the annual $2-2.5 billion of equity infusion by bringing in new investors is also likely to continue.
“This year will be more about asset completion,” he said.
Renewable energy firm Adani Green will complete 6-7 GW project, while the solar wafer manufacturing unit will attain scale. Also, the new airport at Mumbai will be completed, he said.
The projected capital expenditure or capex for 2024-25 (April 2024 to March 2025) fiscal is 40% higher than what the portfolio is estimated to have incurred in FY24.
The group had previously guided a $100 billion capex over the next 7-10 years. Most of this investment is going to go into the group’s fast growing businesses — renewable, green hydrogen and airports and infrastructure, he said.
As much as 70% of the planned capex will go into its green portfolio — primarily renewable power, green hydrogen, green evacuation. Of the remaining 30%, the majority will be spent towards airports and ports businesses.
Adani Group companies posted a record 45 per cent rise in pre-tax profit (Ebitda) to ₹82,917 crore (about $10 billion) in FY24, Singh said.
Emerging from a damning report of a US short seller, which hit the market value of its listed companies, Adani Group in 2023-24 focused on containing debt, reducing founder share pledge and consolidating the business in core competencies. The five-year CAGR (compound annual growth rate) for profit growth was 54%.
A school drop-out, group chairman Gautam Adani started out as a commodities trader and rose to be counted among world’s richest with an empire spanning across ports, power generation, airports, mining, renewables, gas, data centres, media and cement.
Today, Adani Group is the world’s second largest solar power company, it is the largest airport operator with 25 per cent of passenger traffic and 40% of air cargo, the largest ports and logistics company with 30 per cent of national market share, largest integrated energy player, and the country’s second largest cement manufacturer.
With strong emphasis on green energy transition, it will be allocating more than 70 per cent of this USD 100 billion to its green businesses including renewable power, green hydrogen, and green evacuation transmission lines.
The conglomerate is building the world’s largest renewable park at Khavda, Gujarat, spanning over 530 square kilometers – an area five times the size of the city of Paris.
A large portion of total investments is earmarked for expansion and development of its fast-growing airports business and ports business.
With a portfolio boasting eight airports including the upcoming Navi Mumbai airport and 14 domestic ports, Adani wants to further solidify its presence in these sectors.